first_img The Rolls-Royce (LSE:RR) share price has decreased dramatically since the start of the Covid-19 crisis. But is the worst already behind for the company? Share price fallThe share price plunge has been dramatic. The value of Rolls-Royce stock has fallen by two thirds, below 300p per share.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…As you can see from the graph, most of the damage was due to the coronavirus pandemic that started in March. However, unlike many other companies, Rolls-Royce’s stock hasn’t recovered any of the losses since.As we all know, Rolls-Royce is a large engine producer. The company’s customers include industrial firms and nuclear power plants. Many orders are due to defence but the greatest number of customers are from the civil aerospace sector. The aerospace division is so important for the company that 47% of its employees work there. Due to the pandemic, aerospace industry activity fell to levels unseen before. So, many of the company’s customers were lost. Rolls-Royce’s fundamentalsThat is why credit rating agency S&P downgraded the company’s credit rating to junk status on 28 May. Two other investment agencies – Moody’s and Fitch – did not change their credit ratings of the company. However, it is likely that they will follow S&P’s example. If that happens, Rolls-Royce’s borrowing costs will rise.On a more positive note, Rolls-Royce’s other customers are getting on somewhat better. According to the company’s report, defense activity is in line with the management’s expectations. Still, the power systems department is experiencing some problems due to a slight drop in demand from oil and gas customers.Fortunately, Rolls-Royce has a substantial cash cushion and much of its debt is not maturing any time soon. The company’s current cash level amounts to £5.2bn. Rolls-Royce expects its liquidity to total £6.7bn due to additional borrowing. Even though it will have a bad effect on its balance sheet, it will allow the company to avoid bankruptcy for some time. The only debt maturing in the near term is a £500m bond. The repayment is due in the second half of 2020 and the company has enough cash to repay it.  Rolls-Royce is also decreasing labour costs to improve efficiency. Quite recently the company announced that it would cut 9,000 jobs in its civil aerospace wing. Sadly, it will make many people unemployed. The company’s current shareholders are in an unpleasant situation as well. Apart from the dramatic share price plunge and plenty of uncertainty ahead, they will not get a dividend this year. All these measures, however, will allow the company to spare some cash. Here’s what I’d do nowI totally agree with my colleague Kirsteen Mackay that Rolls-Royce is not a perfect stock for novice investors. It carries substantial risks. Even though the global economy is starting to open up, the aerospace industry will probably take a lot more time to recover. This means that Rolls-Royce shares will stay depressed for some time. Overall, I think that there are many other options for FTSE 100 investors. Simply click below to discover how you can take advantage of this. Image source: Getty Images The Rolls-Royce share price has fallen below 300p. Here’s what I’d do now Anna Sokolidou | Wednesday, 3rd June, 2020 | More on: RR Enter Your Email Address I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Our 6 ‘Best Buys Now’ Sharescenter_img See all posts by Anna Sokolidou “This Stock Could Be Like Buying Amazon in 1997” Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. 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