Economic and financial analysis of Endesa

Abstract

The electricity industry, is a sector that in recent years is facing new and important changes in the energy model, most notably is the increase in renewable energy generation, which also affects the large investments made earlier in the generation of conventional energy. Therefore, this paper aims to analyse the economic-financial situation of one of the most important companies in this sector, Endesa S.A. Group, and its evolution over the last 5 years. The analysis of the sector will also be performed, in which the evolution and comparison of the target company with two main competitors, Iberdrola and Naturgy, will be analysed. Through this complete analysis different conclusions will be obtained such as the great investment made in Property, plant and equipment, the important fall in the profit for the year in 2019, the financing of the operating cycle through its suppliers or the lack of competitive advantage over its competitors.