EVALUATING CORPORATE RESILIENCE: LIQUIDITY AND LEVERAGE AS INDICATORS OF INSOLVENCY VULNERABILITY IN TRANSPORT AND LOGISTICS
Keywords:
Financial analysis, transportation, logistics industry, leverage, financial health, liquidity, insolvency risk, solvency, capital structure, economic resilience.Abstract
The financial resilience of transport and logistics companies has become increasingly vital in the face of recent global disruptions. The 2020-2021 pandemic has significantly affected logistics and transportation companies, while companies incurring considerable losses. This research analyzes the financial health of Neo Trans LLC, and FedEx Corporation from 2020 to 2024, focusing on liquidity and solvency's impact on operational viability. It reveals a trend of impaired liquidity among companies, leading to increased risk of insolvency. FedEx, on the other hand, has a stronger position with declining debt-to-equity ratios and a robust ability to service debt. The study suggests companies should adopt strategic measures to optimize capital structures, enhance working capital efficiency, and implement cost-reduction initiatives for long-term solvency.
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