In the German weekly business news magazine WirtschaftsWoche, Prof. Alexander Himme explains why profits don’t necessarily equate to liquidity, and why the crisis found Adidas and many other companies poorly prepared.
Guest article by Prof. Alexander Himme, Associate Professor of Management Accounting
"In the context of the corona crisis, the 'Adidas case' has received considerable attention. The world's second largest sporting goods manufacturer posted sales of 23.6 billion euros and profits of almost two billion euros in 2019, representing a new record. How is it possible, then, that such a successful company had to so quickly resort to demanding rent deferrals and ultimately applying for a state loan to maintain its liquidity? Simple: because profits don’t necessarily equate to liquidity. (…)"
Read the full guest article by Alexander Himme, Associate Professor of Management Accounting (May 14, 2020).
Corona Crisis: Analyses & Comments
This article is part of the Corona series of analyses and comments with KLU researchers regarding different aspects of the effects of the ongoing coronacrisis on our daily lifes, the economy, our way we work and more. Find all analyses and comments.