It’s that time of the year again.
Companies are gearing up to release their full-year 2020 earnings and investors will be closely scrutinising the numbers and business commentary.
What makes this earnings season interesting is the effect of the pandemic on various businesses.
Management’s earnings commentary can provide clues on how each industry is faring, and also gives insights as to how businesses are coping with the challenges.
By reviewing the financials and understanding how each company is faring, investors can get a better sense of which companies remain resilient, and which are still struggling.
Here are three aspects that investors should focus on when they pore through the financial statement and commentaries.
Tackling COVID-19
For industries that were badly impacted by the pandemic, the latest earnings report can offer a glimpse as to how the companies within them are coping.
A good example is the aviation industry.
Lockdowns and border closures had decimated air travel for most of 2020, adversely affecti...
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