Financial Performance Analysis of Transportation Industry Pre and During Covid 19 Pandemic: A Profitability Approach

Abstract

The Covid-19 pandemic has turned 2020 into a worldwide ‘nightmare’ including in Malaysia. Most sectors were unable to operate during the pandemic covid, especially the transportation industry. As a result, several companies had to shut down their businesses and stop operating as they failed to maintain their profits and suffered losses. This study aims to analyze financial performance through a profitability approach. To achieve the objective of the study, there are four (4) transportation companies listed in Bursa Malaysia were selected, and the data gathered from the year 2011 until 2020. The profitability level of the firms was evaluated using four different variables which are asset turnover, sales growth, current ratio, and leverage. To confirm the level of profitability performance, the study employed panel data analysis using STATA 14 software. The findings showed that the sales growth and current ratio have a positive relationship with profitability while asset turnover and leverage have a negative relationship with profitability. The study also found that asset turnover and current ratio have a statistically significant relationship with profitability while sales growth and leverage do not have a statistically significant relationship with profitability. Based on the results, it helps the transportation industry to boost its financial performance and benefits by strengthening the strategic plan of the company. Therefore, it can motivate the transportation industry to become more relevant in the future and sustain financial performance in the long-term period.