Covid 19 Degree of Immunity
Current economic situation
The Corona crisis has brought much of the economy to a halt. Many companies are currently experiencing a partial or even complete loss of turnover, while costs often continue to grow. This is getting many companies into trouble. Companyweb is investigating which companies are best armed to weather this crisis.
Which companies are best armed?
Companies with sufficient cash and little debt are more resistant to surviving a period with less or no income. The sector in which a company operates is also a determining factor.
Companyweb examines to what extent companies:
- have sufficient liquidity (liquidity buffer)
- have little debt (capital buffer)
- are active in a risky sector (sector vulnerability)
The combination of these 3 parameters results in additional insights.
Attention: Degree of immunity versus Health Barometer
The health barometer is calculated on the basis of the company as a “going concern”.
This looks at the general state of health of a company and many parameters are taken into account: profitability, debt ratio, liquidity, evolution of accumulated profit/loss, evolution of cash flow ... and non-financial indicators such as: Late filing of the annual accounts, NSSO summonses, arrears to the tax authorities and NSSO, previous bankruptcies of one or more directors, judicial reorganisation etc.
The degree of immunity assumes an “economic standstill” for a limited period of time and examines whether an enterprise can survive this period.
The degree of immunity can therefore display a different picture from the health barometer and help in assessing any support to the affected company (installment plan, payment deferment, ...).
The degree of immunity is also an evolving factor, depending on the duration of the crisis, the support measures taken, credit facilities, moment of restart of some sectors ...