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Large businesses showing greatest signs of economic improvement
Experian, a leading global information services company, on March 23 announced the results of its monthly Business Benchmark Report. In February, the national average commercial risk score was 58.15,* improving by 1.8 percent over January's number. Businesses with 250 to 499 employees have shown the greatest change in the percent of delinquent dollars, seeing a 5.7 percent improvement over the past six months. The largest businesses – those with more than 1,000 employees – have improved by 3.6 percent and continue to rank among the lowest rate of severe delinquency at 2.1 percent, far below the national average.
Other key findings from this month's Business Benchmark Report include the following.
Risk score:
- The national average commercial risk score was 58.15, which improved over last month by more than a full point (or 1.8 percent), continuing to indicate signs of stability and improvement in the business sector.
- Utility companies still have the highest risk score average of all industries (68.39), while the hospitality, retail and finance industries continue to have the lowest average at 51.91, 51.77 and 49.88, respectively.
- The Plains states have the highest risk score average of all geographic areas (62.11), but North Dakota and Vermont showed the highest per-state average, with 66.80 and 64.46, respectively. The Northeast continues to have the lowest average risk score (55.30). However, the states with the lowest average scores are Florida (53.28) and Nevada (51.97).
Average days beyond terms (DBT):
- Health services, public administration and education services demonstrate the best payment performance and are well below the national average, coming in at 4.90, 5.27 and 5.55 DBT, respectively.
- New England and the Northeast show the best average payment performance, with 4.78 and 4.61 DBT, respectively. However, Alaska (2.74) and Mississippi (3.40) came in with the lowest average DBT per state. Arizona, New Mexico and Nevada had the highest, with 11.11, 11.52 and 12.00 DBT, respectively.
* Based on a 100-point scale
Percentage of dollars delinquent:
- The national average percentage of dollars delinquent for February improved by 3 percent over the past six months, and the percentage of dollars 91-plus days delinquent remained stable in February, after seeing a 2 percent improvement last month.
- The hospitality industry showed the greatest change, with a 13 percent improvement in the percentage of dollars delinquent and an 11 percent improvement in the percentage of dollars 91-plus days delinquent.
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The South Central and Mountain regions showed the greatest improvement in percentage of dollars delinquent (7 percent and 15 percent) and percentage of dollars 91-plus days delinquent (4 percent and 11 percent), respectively. Texas; California; and Washington, D.C., were among the areas with the lowest percentage of dollars delinquent, with an average of 10.01, 9.6 and 7.5, respectively.
February 2010
Percent
Risk Average $ Percent
score DBT delinquent $ 91+
National average 58.15 6.26 12.2% 5.3%
---------------- ----- ---- ---- ---
Number of
employees
----------
Nonemployer 60.11 5.46 7.7% 4.9%
----------- ----- ---- --- ---
1 to 4 55.96 7.04 14.4% 8.0%
------ ----- ---- ---- ---
5 to 9 54.10 8.27 14.8% 7.5%
------ ----- ---- ---- ---
10 to 19 53.61 8.36 14.8% 6.1%
-------- ----- ---- ---- ---
20 to 49 54.90 8.17 14.0% 4.7%
-------- ----- ---- ---- ---
50 to 99 55.47 7.82 15.3% 3.9%
-------- ----- ---- ---- ---
100 to 249 53.72 8.16 16.0% 2.9%
---------- ----- ---- ---- ---
250 to 499 52.30 8.72 14.9% 2.2%
---------- ----- ---- ---- ---
500 to 999 51.78 8.83 16.9% 1.5%
---------- ----- ---- ---- ---
1,000 and over 38.16 7.69 19.0% 2.1%
-------------- ----- ---- ---- ---
Six-month change
Percent
Risk Average $ Percent
score DBT delinquent $ 91+
----- -------- ----------- --------
National average -1.8% 4% -3% 0%
---------------- ---- --- --- ---
Number of
employees
----------
Nonemployer -1.7% 2.7% -5.1% -2.3%
----------- ---- --- ---- ----
1 to 4 -2.1% 5.7% 0.5% 2.2%
------ ---- --- --- ---
5 to 9 -1.9% 5.9% 0.7% 5.1%
------ ---- --- --- ---
10 to 19 -1.5% 4.9% -1.1% 3.4%
-------- ---- --- ---- ---
20 to 49 -0.8% 4.0% -2.2% 4.2%
-------- ---- --- ---- ---
50 to 99 -0.5% 3.3% -2.2% 1.6%
-------- ---- --- ---- ---
100 to 249 -0.6% 3.0% -2.3% -1.5%
---------- ---- --- ---- ----
250 to 499 -0.9% 3.5% -5.7% -0.9%
---------- ---- --- ---- ----
500 to 999 -1.7% 4.2% -4.5% -11.6%
---------- ---- --- ---- -----
1,000 and over -12.2% 9.4% -3.6% -0.8%
-------------- ----- --- ---- ----
February 2010
Percent
Risk Average $ Percent
score DBT delinquent $ 91+
----- ------- ---------- -------
Industry group
--------------
Agriculture 62.93 5.63 11.44% 6.72%
----------- ----- ---- ----- ----
Forestry 64.68 3.87 8.39% 3.26%
-------------- ----- ---- ---- ----
Mining 60.26 5.04 6.40% 1.16%
------ ----- ---- ---- ----
Construction 55.00 10.38 22.10% 9.68%
------------ ----- ----- ----- ----
Manufacturing 55.77 8.89 15.65% 4.35%
------------- ----- ---- ----- ----
Transportation 52.70 8.15 14.47% 6.13%
-------------- ----- ---- ----- ----
Communications 49.48 10.20 18.43% 8.36%
-------------- ----- ----- ----- ----
Utilities 68.39 5.19 15.77% 2.90%
--------- ----- ---- ----- ----
Wholesale trade 56.16 7.92 13.07% 3.44%
--------------- ----- ---- ----- ----
Retail trade 51.77 8.33 18.02% 5.75%
------------ ----- ---- ----- ----
Finance 49.88 9.02 13.15% 8.50%
------- ----- ---- ----- ----
Insurance 58.97 6.29 8.57% 6.00%
--------- ----- ---- ---- ----
Real estate 55.74 6.78 4.67% 2.95%
----------- ----- ---- ---- ----
Hospitality 51.91 7.24 6.21% 1.97%
----------- ----- ---- ---- ----
Business services 54.12 8.99 15.55% 8.24%
----------------- ----- ---- ----- ----
Health services 60.63 4.90 10.85% 3.78%
--------------- ----- ---- ----- ----
Legal services 56.29 6.85 13.93% 9.50%
-------------- ----- ---- ----- ----
Educational
services 60.96 5.55 10.70% 5.24%
----------- ----- ---- ----- ----
Public admin. 60.74 5.27 14.27% 4.61%
------------- ----- ---- ----- ----
Six-month change
Percent
Risk Average $ Percent
score DBT delinquent $ 91+
----- ------- ---------- -------
Industry group
--------------
Agriculture -1.09% 5% 9% 17%
----------- ----- --- --- ---
Forestry -1.11% 4% 7% 13%
-------------- ----- --- --- ---
Mining -0.76% 3% -10% -15%
------ ----- --- --- ---
Construction -1.27% 4% -1% 3%
------------ ----- --- --- ---
Manufacturing -1.12% 4% -1% 7%
------------- ----- --- --- ---
Transportation -2.02% 4% 1% 1%
-------------- ----- --- --- ---
Communications -3.30% 7% 0% 3%
-------------- ----- --- --- ---
Utilities -0.66% 5% -3% -9%
--------- ----- --- --- ---
Wholesale trade -1.31% 4% -2% 1%
--------------- ----- --- --- ---
Retail trade -2.26% 6% 1% 4%
------------ ----- --- --- ---
Finance -3.17% 5% -4% -2%
------- ----- --- --- ---
Insurance -2.53% 6% 7% 15%
--------- ----- --- --- ---
Real estate -1.95% 4% 0% 2%
----------- ----- --- --- ---
Hospitality -1.89% 2% -13% -11%
----------- ----- --- --- ---
Business services -2.50% 7% 1% 3%
----------------- ----- --- --- ---
Health services -1.66% 5% -1% 3%
--------------- ----- --- --- ---
Legal services -2.49% 7% -5% 0%
-------------- ----- --- --- ---
Educational
services -1.43% 5% -1% 6%
----------- ----- --- --- ---
Public admin. -1.89% 6% 2% 8%
------------- ----- --- --- ---
February 2010
Percent
Risk Average $ Percent
score DBT delinquent $ 91+
Region
------
Mid-Atlantic 60.33 5.38 12.7% 4.5%
------------ ----- ---- ---- ---
Midwest 59.85 6.57 17.0% 7.0%
------------ ----- ---- ---- ---
Mountain 58.42 9.52 8.3% 4.4%
-------- ----- ---- --- ---
New England 61.19 4.78 10.7% 3.9%
----------- ----- ---- ---- ---
Northeast 55.30 4.61 14.4% 5.4%
--------- ----- ---- ---- ---
Northwest 60.06 8.00 12.4% 5.1%
--------- ----- ---- ---- ---
Plains 62.11 5.95 13.0% 4.4%
------ ----- ---- ---- ---
South Central 58.00 5.56 10.1% 3.8%
------------- ----- ---- ---- ---
Southeast 56.29 6.88 13.3% 6.2%
--------- ----- ---- ---- ---
Southwest 56.58 6.26 9.9% 5.2%
--------- ----- ---- --- ---
Six-month change
Percent
Risk Average $ Percent
score DBT delinquent $ 91+
----- ------- ---------- -------
Region
------
Mid-Atlantic -1.6% 6% 1% 4%
------------ ---- --- --- ---
Midwest -1.6% 4% 1% 2%
------------ ---- --- --- ---
Mountain -1.4% 3% -15% -11%
-------- ---- --- --- ---
New England -1.1% 5% 1% 5%
----------- ---- --- --- ---
Northeast -1.6% 4% 3% 7%
--------- ---- --- --- ---
Northwest -1.7% 4% -3% 0%
--------- ---- --- --- ---
Plains -1.1% 5% 4% 8%
------ ---- --- --- ---
South Central -1.7% 2% -7% -4%
------------- ---- --- --- ---
Southeast -2.0% 3% 0% 3%
--------- ---- --- --- ---
Southwest -2.5% 6% -6% 1%
--------- ---- --- --- ---
To see a visual representation of this data and other information broken down by state in an interactive map of the United States, visit http://www.businesscreditfacts.com/map.
