More than a quarter of companies do not generate enough earnings to service their debt

Valor shows that, even as the Selic rate began to fall, many companies still do not generate enough cash to service their debt: a RK Partners survey finds that 27% of listed companies earn less than their debt payments. Ricardo Jacomassi, partner and chief economist at TCP Partners, said cash remains tight because financial costs have not yet fallen and sales have not recovered; a TCP report covering 60 sectors projects a 6% rise in judicial recovery filings in 2024. He also noted more demand for buyers or partners (distressed M&A) and named hospital care, printing and agribusiness among the most pressured sectors.