Business Insolvencies — methodology

What this metric measures

Number of companies entering formal insolvency proceedings each quarter. Note: Insolvency is a formal legal process and is not the same as business closure. Many businesses exit voluntarily without entering insolvency.

Why it matters: Rising insolvencies signal financial distress in the business sector. Insolvencies are distinct from total business exits — they represent only those businesses that cannot meet their debts.

Source & provenance

Publisher

ASIC Insolvency Statistics

Update frequency

quarterly

Licence

CC BY 4.0

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How the score is computed

The score is a 0–100 normalisation of the latest observation, compared to a baseline window. The traffic-light rating (RAG) reflects both the absolute level and the recent trend.

Direction

Lower is better

Trend window

60 months

Baseline

Last 10 years

{
  "red_min_pct_of_baseline": 110,
  "amber_max_pct_of_baseline": 110,
  "green_max_pct_of_baseline": 95
}