The impact of the pandemic on the solvency of corporations – StatCan COVID-19January 21, 2021
The COVID-19 pandemic has posed significant challenges to the Canadian economy and the financial position of enterprises. The second quarter of 2020 saw the steepest decline in real gross domestic product (-11.3%) since quarterly data were first collected in 1961. Over the same period, enterprises reported lower net income before taxes (-8.6%) and operating revenues (-13.1%), according to the Quarterly Survey of Financial Statements (QSFS).
This article examines the changes in the number of companies that filed under the Bankruptcy and Insolvency Act and the Corporations’ Creditors Arrangement Act from 2006 to the third quarter of 2020.