The Impact of COVID-19 on ASML's Financial Performance

Abstract

During 2020-2022, the arrival of COVID-19 has influenced the world economy and led to a surge in demand for working from home, and the demand for semiconductors such as chips has changed significantly too. Some researchers have found that ASML, a leading company in the semiconductor industry, has also been affected by the sudden epidemic. However, there is a lack of uniform explanation for the specific financial impact on ASML. This paper aims to analyze how COVID-19 has affected the financial performance of ASML. Incorporating evidence from calculating the data from ASML’s financial statement as well as relative valuation, the data in the report insulates that the profitability and operational efficiency of ASML company have improved over the past four years, while the volatility of the stock is also relatively stable. With the outbreak of the epidemic and its direct impact on the world economy, the financial performance of ASML has become worse. Although there have been some losses in some aspects, overall, there is still a good prospect of upward development for ASML. In the complex international situation, this has important reference significance for the development and breakthroughs of other small and medium-sized enterprises.