Analysis of the Capital Structure of the Company in the Period Before and During the COVID-19 Pandemic

Michal RIMEŠ

https://doi.org/10.53465/EDAMBA.2023.9788022551274.250-260

 

Abstract: This paper summarizes the optimal capital structure, comparing the period before and during the COVID-19 pandemic. Using the analysis of financial statements, we deal with the adequacy of the capital structure, drawing on the available literature that describes both classical and current models. We concluded that the company's low credit indebtedness was very beneficial for companies during the pandemic period since companies with a high credit burden were much more likely to become insolvent. The company we monitor draws foreign sources of coverage mainly from the sources of the consolidated whole, which is a huge competitive advantage, but we realize that not every company has such possibilities. In addition, itis necessary to monitor liquidity indicators, because our analysis showed that although the company, we monitor is financially sound and in excellent shape, it may have problems with repaying its liabilities, as its liquidity ratios have been below the optimal threshold for a long time.

Keywords: Capital Structure, Pandemic Period, Financial Statements, Financial Indicators

JEL classification: G30, G32, M41

Fulltext: PDF

Online publication date: 25 January 2024

ISBN: 978-80-225-5127-4

Publisher: University of Economics in Bratislava

Pages: 250-260

 

To cite this proceedings paper (STN ISO 690 and 690-2): 

RIMEŠ, M. 2024. Analysis of the Capital Structure of the Company in the Period Before and During the COVID-19 Pandemic. In PETROVSKÁ, F. (ed.). EDAMBA 2023: Conference Proceedings. Bratislava: University of Economics in Bratislava, 2024. ISBN 978-80-225-5127-4, pp. 250-260.

https://doi.org/10.53465/EDAMBA.2023.9788022551274.250-260