1) Using financial reports data for a total of 5 years, 4 years pre-Covid-19 crisis (i.e., 2015-2019) AND post-Covid-19 crisis year (i.e., 2020) students must focus on the general strengths and weaknesses that the company had before the crisis, and any possible changes in the company’s circumstances during the crisis. Notice that as financial reports may not be complete for the whole year 2020, partial reports and information should be used. The constraint on information will be made clear as part of the “Methodology” and the “Results” section of the paper.
2) Students must notice that some MNC’s performance may differ from other companies headquartered in the same country because their revenues rely on countries which were less/more affected by the 2020’s crisis. It could be an interesting point to look at the location of the MNCs’ operations and stablish what countries or segments/products of the whole MNC have suffered more/less during the crisis, and to find out any possible variations in the short-term strategy of the company during 2020.
3) Identify the specific financial and other risks’ reports, accounts and ratios that support with relevant information the students’ statements in relation to outcomes from the crisis as compared to the pre-crisis performance. Notice whether the company took/issued more debt/equity during 2020. Notice whether Working Capital policies/ratios of the company changed in 2020. Notice any investments taken place during the crisis period or whether the company delayed investment plans in 2020. Notice whether the company’s profitability indicators were acutely/slightly affected by the crisis.
4) Clearly recognise the most valuable reports, accounts, ratios, and intelligence providing meaningful information about any direct/indirect support received from government or central bank policies during the crisis.
5) Ascertain the most important risk factors that affected the company after the crisis and may continue to impact on the company after the crisis period (i.e., short-term and medium-term). Risk factors must be associated to explicit data in financial reports, accounts, and ratios.
