5 Monitoring of ANSPs cash and liquidity situation
This chapter provides an overview of ANSPs’ financial situation over the 2017 - 2022 period, using two indicators: the current ratio and the cash-on-hand days. These indicators have been calculated at pan-European system level using the information provided in the ANSPs’ Financial Statements which were available at the time of publishing this report (34 for the 2017-2021 period and 23 in 2022). The indicators are therefore consistent with those published at individual ANSP level in the EUROCONTROL Aviation Intelligence Unit ANSPs Financial Dashboard.
Depending on the organisational set up of different ANSPs, the information reported in their financial statements covers a different scope of activities (e.g. it may include airport management operations, commercial activities, etc.) which does not always correspond with the ACE gate-to-gate scope. Additionally, due to specific organisational and financial set up, DCAC Cyprus, HASP, LVNL and MUAC, are excluded from the analysis presented in this chapter.
Figure 5.1 presents the changes in the average current ratio between 2017 and 2022 as well as the 1st and 3rd quartiles. The current ratio (current assets divided by current liabilities) measures the ability of a company to pay its short-term debt obligations with its current assets. On average, the situation slightly improved in 2022 following four years of continuous deterioration. However, for 25% of the sample, the current ratio has shown only small improvement since reaching its lowest level in 2020.
Figure 5.2 shows the changes in cash-on-hand days at Pan-European system level over the 2017 - 2022 period as well as the 1st quartile and the 3rd quartile of these indicators. The cash-on-hand days indicator (cash & cash equivalents divided by operating costs x 365) measures the length of time a company can pay its operating costs from its cash reserves.
In 2022, the average cash-on-hand days amounted to 172 days, which is +65 days higher than in 2021 and +34 days higher than in 2020. The 2022 figure reached the pre-pandemic levels. More detailed analysis on these financial indicators will be available in the forthcoming ACE report.