Hertz Global Holdings Inc. (HTZ) – The effect of COVID-19

As a major company in terms of the fleet of car services across the world, Hertz Global Holdings Inc. (HTZ) has got its name world-wide. Founded in the year 1918, the HTZ has shown rapid growth in terms of providing services across the world. Including the United States, the HTZ has been providing its services across the world located in Asia, Africa, Australia, North America, New Zealand, and Europe. The current President and Chief Executive Officer (CEO) of the HTZ are Mr. Paul E. Stone. In the first quarter of 2020, the company has seen a rapid decline in the monthly consolidated revenue growth.

Recording a 6% revenue growth for the months of January 2020 and February 2020 the company has seen a sharp decline in its revenue growth in the month of March 2020 by 34%. This was majorly due to the effect of COVID-19. The COVID-19 effect had a major impact on this industry as the people across the globe were home arrested. The usage of the rental cars declined and this in turn had a major effect on the revenue and business of the company.

The performance of the NYSE: HTZ at https://www.webull.com/quote/nyse-htz company in the last two years was on a positive mark. But with the effect of COVID-19, the trend of growth and development declined on a rapid scale. With an increase in the COVID-19 effect, the HTZ had to slash down the rental fleet orders which had a major impact on their revenue. In the month of March-2020, the company had to engage for their financial support from the United States and European governments. This was required at the time of the COVID-19 disaster.

Also, the discussions with various lenders not only on the financial basis but also on the long term capital structure were required in order to maintain the company’s management structure. There were also various customer safety measures adopted by the company to drop the customers’ safe to their required destination.

With the pandemic of COVID-19, the HTZ post a final discussion among the major management group and leaders of the company filed for bankruptcy on 22nd May 2020. This had a major impact on the investors who had invested in this company. Mr. Carl Icahn, a businessman and a major investor in the stock market, held around 40% of the stocks from HTZ had a loss of almost around $1.6 billion when the HTZ had filed for bankruptcy. You can check the real time stock market before investing. Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.