Accrual and Cash Financial Performance of Information Technology Companies During the COVID-19 Pandemic

Abstract

Research background Many companies have experienced a significant impact on their financial performance due to the pandemic period. The effects were mostly negative as a result of by due to the various restrictions that were put in place to limit direct contact among people and restrict mobility during the pandemic. As a result, online contacts increased, therefore, we decided to ask the following research question: Did the performance of Information Technology companies increase during the COVID-19 pandemic? Purpose The aim of the research was to examine the financial performance of Information Technology businesses from 2018 to 2021. In the article, a ratio analysis was conducted using the bi-annual financial data of IT companies. Research methodology The analysis included data accrual and cash results. The objective of the investigation was to assess the economic status of Information Technology firms, utilizing various analytical tools such as ratio analysis. Descriptive statistical methods were also employed to provide an overview of the findings. Furthermore, logit and discriminant models were utilized to summarize the financial outcomes. Results Based on the findings of the study that examined the financial status of Information Technology firms before and during the COVID-19 pandemic, it appears that these companies were able to maintain or improve their financial status during the pandemic, which goes against the general trend observed in the economy. Novelty Our examination of Information Technology firms’ bi-annual accrual and cash financial outcomes amid the COVID-19 pandemic is unique due to the macroeconomic element – the epidemic at such a scale had not taken place in many years of the Polish market economy.