ASSESSMENT OF THE FINANCIAL HEALTH AND THE RISK OF BANKRUPTCY OF PASSENGER CAR DEALERSHIPS IN THE CZECH REPUBLIC DURING THE COVID-19 EPIDEMIC

Research background: The Covid-19 pandemic has affected all sectors of the economy. The automotive sector was among the worst affected. Purpose: This article assesses the financial health and bankruptcy risk of passenger car and light commercial vehicle dealerships in the Czech Republic during the Covid-19 pandemic. Research Methodology: The study uses publicly available data from 24 selected dealerships. Models Z’ score, Z” score and IN05 are used to assess financial health and bankruptcy risk. Results: Surprisingly, the Covid-19 pandemic did not have a significant negative impact on the financial health of retailers on average during the period under review and there was no significant increase in the number of retailers at risk of financial problems or even bankruptcy. Novelty: Many studies have looked at the impact of Covid-19 on the automotive industry. However, only few have focused on the automotive sales sector (car dealerships), which is an important part of the value chain.