The impact of the coronavirus crisis on the financial performance of Lithuanian road transport companies

Abstract

The evolving situation due to COVID-19 is causing a crisis not only in terms of health but also in economic terms. Companies are encountering urgent solutions to avoid financial problems. In both theory and practice the impact of the coronavirus outbreak on the transport companies mostly is negative, but there are not enough researches of this topic due to novelty of situation. Part of the authors do not agree on some issues, so this thesis will be relevant for a long time. According to literature review, is is observed that transport companies are experiencing a significant decrease in profits during the first and second waves of COVID-19 outbreak. The study uses the expert survey to identify the most affected indicators of profitability and liquidity of the road transport companies. The relative financial ratios and the study of the dependence of financial results on the coronavirus outbreak show that there is an unequal correlation relationship between the number of quarantine days in Lithuania and the financial rations of road transport companies. It is likely that the COVID-19 crisis may have both positive and negative effects or no effect on the financial performance of transport companies. Immediate and continuous involvement in monitoring and controlling on the financial situation of the company is very important during COVID-19 crisis.