Ratio analysis : a comparison of the financial effects of the Covid-19 crisis on airbus and boeing

Abstract

This thesis's objective is to conduct a ratio analysis of Airbus’ and Boeing’s financial results over three years, from 2019 to 2021. During this time, COVID-19 had a significant impact on the sector. The two companies' financial reports are compared and contrasted, so that trends and patterns in terms of financial performance can be identified and the financial position of both companies after 2021 can be determined. The research is conducted using a ratio analysis of the financial statements of Airbus and Boeing over three years, including a quantitative and qualitative analysis of their performances and corresponding notes. The significance of this thesis is that it provides a comprehensive analysis of the financial performance of two major players in the aerospace industry, Airbus and Boeing, which can be helpful for investors, industry analysts, and other stakeholders. The ratio analysis demonstrates that both businesses were having trouble during the crisis. Due to the COVID-19 outbreak, both companies encountered significant difficulties in 2020 as demand for air travel and, by extension, airplanes, in general, was drastically declining. Both were aiming for high liquidity and short-term solvency to settle their short-term liabilities. Due to rising revenues and cost-cutting measures in 2021, both businesses were able to stabilize their financial results more or less once more. However, both firms had to incur more outstanding long-term debts to repay the funds, which were needed for short-term solvency in 2020.

Die Arbeit vergleicht die finanzielle Entwicklung von Airbus und Boeing in den Jahren 2019 bis 2021 anhand einer Kennzahlenanalyse. Im Mittelpunkt stehen die Auswirkungen der COVID-19-Krise auf Liquidität, Verschuldung und wirtschaftliche Leistungsfähigkeit. Beide Unternehmen waren 2020 aufgrund des starken Rückgangs der Nachfrage nach Flugreisen und Flugzeugen mit erheblichen finanziellen Schwierigkeiten konfrontiert. Durch steigende Umsätze und Kostensenkungsmaßnahmen konnten sie ihre finanzielle Lage 2021 teilweise stabilisieren. Allerdings mussten beide Unternehmen langfristige Schulden aufnehmen, um ihren kurzfristigen Finanzierungsbedarf während der Krise zu decken.