The accounting ratios stress during Covid-19 pandemic: A sector analysis in portuguese companies

• Autor(a) principal: Faria, Maria José da Silva
• Data de Publicação: 2022
• Outros Autores: Carvalho, João M. S.
• Tipo de documento: Artigo
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/11328/4615; https://doi.org/10.47191/jefms/v5-i12-56
• topic: Covid-19; Sectorial economic impact; Financial reports; Financial autonomy; Liquidity ratios; Economic ratios; Financial ratios; Solvency ratios; Return on equity; Return on assets; Public policies supporting companies

The pandemic raised questions about the strength and weaknesses of some sectors of activity. This article aims to determine the impact of the Covid-19 pandemic on Portuguese companies according to the values obtained in calculating liquidity, profitability and structure/debt ratios. One studied a sample of 15,367 companies operating between 2018 and 2020. Two aspects are highlighted in this study: i) the liquidity and profitability of companies fell, in most sectors, a fact that worsened the capital structure of companies and increased their degree of indebtedness, and ii) there were negative and positive impacts for different sectors of activity. Those most affected by the pandemic were tourism and public administration activities. Those least affected were the agriculture and information and communication activities. This study identifies the sectors in which public support policies were successful and those that should receive special attention given their contribution to the Portuguese Gross Domestic Product.