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Financial Data as a Mirror of an Economic Story. An Empirical Approach to the Impact of the COVID19 Pandemic on the Financial Equilibrium

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  • MUȘETESCU Radu-Cristian
  • GRIGORE George-Eduard
  • NICOLAE Simona

Abstract

Normal 0 false false false false EN-US X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin:0cm; text-align:center; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Calibri",sans-serif; mso-bidi-font-family:"Times New Roman"; mso-ansi-language:EN-US; mso-fareast-language:EN-US;} The present article aims to analyze how the imbalances generated by the economic and medical crisis caused by the COVID 19 pandemic in 2020 were reflected in the balance and economic performance at the microeconomic level. Two companies operating in two of the most affected economic areas in 2020, Tourism and Pharmaceutical Industry, represented the foundation of our analysis. Accounting data from the Balance Sheet and Profit and Loss Account, available on the website of the Bucharest Stock Exchange, were the main tools for analyzing the impact that the economic and medical crisis had on indicators such as Working Capital, Self-financing Capacity, Current Ratio, Debt / Equity Ratio, Return on Assets, Return on Equity, etc. The period under consideration covers a period of 4 years, i.e., 2018-2021. The two areas of activity represent, in our opinion, two major poles of the effects of the COVID 19 pandemic, being the loser and the winner (in financial terms) of the economic and medical developments generated by these. The questions we propose to answer based on the financial analysis are: could these two companies also be considered the winner and the loser of 2020 crisis? And what is the story told by the financial data about a company's vulnerability during the crisis?

Suggested Citation

  • MUȘETESCU Radu-Cristian & GRIGORE George-Eduard & NICOLAE Simona, 2023. "Financial Data as a Mirror of an Economic Story. An Empirical Approach to the Impact of the COVID19 Pandemic on the Financial Equilibrium," European Journal of Interdisciplinary Studies, Bucharest Economic Academy, issue 01, March.
    • Handle: RePEc:jis:ejistu:y:2023:i:01:id:511
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    References listed on IDEAS

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    1. Monica Violeta ACHIM & Fanuta POP & Sorin ACHIM, 2008. "The Analysis of Financial Equilibrium in the Context of Account Globalization," Annals of University of Craiova - Economic Sciences Series, University of Craiova, Faculty of Economics and Business Administration, vol. 1(36), pages 225-236, May.
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    More about this item

    Keywords

    Financial data; COVID-19 pandemic; financial analysis; balance sheet; profit and loss account;
    All these keywords.

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies

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