The impact of covid-19 on the life cycle of consumer cyclical companies listed on B3

Abstract

The Covid-19 pandemic has affected the world in many ways, in the economy it has brought the market to a standstill and reduced production in companies. As a result, the Brazilian financial market also suffered from periods of high volatility. In this way, the research aims to verify the variations in the stages of the life cycle as a result of the Covid-00319 pandemic. Public companies in the Cyclic Consumption sector listed on B3 were taken as a basis, analyzing the evolution of life cycles with the consolidation of the third quarter of 2019 and 2020, as well as their general indebtedness, current liquidity and profitability indicators. equity, to verify the financial and economic behavior. In the main results, it was found that companies in the Automobile and Motorcycle subsector maintained the best stages than companies in the Travel and Leisure subsector, the most affected by the pandemic. In the analysis by indicators, the Automobiles and Motorcycles subsector stood out for the increase in indebtedness, the Textiles, Clothing and Footwear subsector for the drop in short-term liquidity, and the Household Utilities subsector for the decrease in own profitability. Factors such as the ability to innovate, dependence on and limitation of third-party resources and use of reserves explain the variations suffered. In this way, analyzing the evolution of the life cycle and the economic-financial indices of companies, it was possible to achieve the objective of the research, demonstrating the impacts suffered as a result of the Covid-19 pandemic.