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Introducing the Deloitte Stability Index

Our Turnaround & Restructuring team has developed the Deloitte Stability Index (“DSI”), a measure of financial stability for South African listed companies based on leading financial indicators so action can be taken sooner rather than later.

The DSI improvement in this quarter can be attributed to one off post-pandemic effects: pent up demand as consumers emerged from isolation, and price inflation as supply chains struggled to cope. Low interest rates and Covid-induced cost cutting measures further supported profitability, driving the DSI close to pre-pandemic levels.

The DSI partially rebounded in the first half of 2021, fuelled by an uptick in market sentiment. However, rallying stock prices have not been matched by trading performance, which remained weak against a backdrop of record high unemployment.

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