Financial Performance and Strategic Management of VINCI and Bouygues: A Comparative Ratio Analysis (2020–2024)

Abstract

This study examines the financial performance and strategic management practices of VINCI and Bouygues, two leading multinational companies in the engineering, construction, and infrastructure sector, from 2020 to 2024. The primary objective is to compare their financial performance, managerial effectiveness, and strategic orientations through a comprehensive financial ratio analysis, supplemented by an evaluation of the strategic narratives disclosed in their annual reports. A comparative research design is employed, using secondary data from the companies’ published financial statements and annual reports. Key financial ratios related to profitability, liquidity, leverage, efficiency, and investment activity are calculated and analyzed over a five-year period to identify performance trends and differences in financial management practices. The findings reveal that VINCI consistently achieved stronger profitability, superior cash-flow generation, and more stable leverage management, reflecting the strengths of its concession- and infrastructure-based business model. In contrast, Bouygues demonstrated higher asset utilization and pursued a more aggressive investment strategy focused on growth and diversification; however, this approach was associated with lower profitability, higher leverage, and greater volatility in debt coverage. The results further indicate a strong alignment between the financial indicators and the strategic narratives presented in the companies’ annual reports, suggesting consistency between managerial communication and actual financial performance. The study concludes that differences in business models and strategic priorities play a significant role in shaping financial outcomes and risk exposure within the engineering and construction industry. VINCI’s disciplined, cash-flow-oriented strategy contributed to stronger and more stable financial performance, whereas Bouygues adopted a more investment-driven approach aimed at long-term expansion. By integrating financial ratio analysis with strategic management assessment, this study contributes to the existing literature on corporate performance evaluation and provides valuable insights for investors, managers, policymakers, and researchers involved in financial analysis and strategic decision-making in large infrastructure and construction firms.