Comparative Analysis of the Financial Stability of Renewable-based Electricity Companies: The Case for Hydroelectric Organizations

Abstract

Hydroelectricity remains the dominate RES (Renewable Energy Source) and the most developed, reaching growth rate peaks in some countries in the 20th century. However, the share of it has fallen over the last few years, as other renewable sources have received rapid development. Despite this, growth for hydroelectricity has remained stable, with China, India, Japan, Russia, Turkey, France, Norway, Canada, USA and Brazil as market leaders. This article analyzes the key trends of development of the hydroelectricity market as a whole, as well as the financial stability of its organizations using bankruptcy likelihood prediction models. The Brazilian and Russian companies were chosen to assess as both countries are classified as developing markets. The bankruptcy prediction models indicate that overall, the financial stability of hydroelectricity giants of Brazil and Russia is at a high level, though profitability ratios are very low. During the COVID-19 pandemic, several financial support measures were implemented by governments, along with the already existing instruments for stimulating renewable energy growth. Authors’ forecasts show that current trends on the market indicate that net addition capacity growth in the next few years will not be enough to meet Net Zero goals for the renewables market.

Assessment of the Financial Stability of Airlines with Different Business Models before, during and after the COVID-19 Pandemic

“…5 For identifying the size and age of each airline's aircraft fleet, we used the industry analytical tool PlaneSpotters. 6 With this tool, we also identified the number of active, parked and arrested aircraft. Information on the exact location of arrested aircraft was received from the flightradar24 database.…”

“…Next, the financial stability of the selected airlines was defined by using three bankruptcy likelihood prediction models: Altman's Z-score model for emerging markets, the AIRSCORE model of Chow et al, and the P-model of Pilarski and Dinh. These models are used not only to identify the actual likelihood of bankruptcy for each airline, but also to in general highlight the current degree of financial stability and the main problems in financial performance [6]. A combination of an internal comparison and an external comparison will be conducted: on the one hand, each parameter (coefficient) of a given bankruptcy model will be compared for the years 2019-2021 within each airline (internal comparison); on the other hand, 5 Official website of the Federal Agency of Air Transport of the Russian Federation.…”

“…URL: https://favt.gov.ru/dejatelnostvozdushnye-perevozki-perevozki-passazhirov/ (accessed on 28.10.2022). 6 Plane Spotters -Airline Index Russian Federation. URL: https://www.planespotters.net/airlines/russian-federation (accessed on 29.10.2022).…”