Fixed costs impact on automobile industry before and after COVID

Abstract

The Covid pandemic has created a lot of opportunities to study companies’ financial status. This paper studies the fixed costs impact in companies of the automotive industry and their augmented effects during the pandemic. For this analysis, we first looked at the sample variable’s correlation with revenue by year and then by regions. Three multiple linear regressions were created to have three different perspectives on the company’s cost structure, liquidity and profitability. The results show the automotive industry and car’s demand is highly correlated with general business cycle and that fixed costs affected the company's ability to be profitable and have liquidity.

Date of Award	23 Jan 2023
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Ricardo Reis (Supervisor)