Covid-19 and the measures taken to contain it have caused an extraordinary level of operating losses, debt accumulation and dividend cancellation across the UK equity market.
However, even where headline metrics are similar, the longer-term consequences for businesses will vary dramatically.
The housebuilders shocked investors with the speed at which balance sheets deteriorated and dividends were cancelled.
Companies, such as Taylor Wimpey, which ended 2019 with more than £500m net cash on the balance sheet, should not have been cutting dividends in almost any scenario - except this one.
The sudden halt to building activity left housebuilders with hundreds of millions of pounds worth of near-finished goods that were contracted for sale but could not be sold.
However, suppliers had to be paid for the work done to date. This created an instant and colossal working capital outflow.
As this outflow completes, a business model that in another industry would be described as 'virtual' will revert to very low monthly running costs. With zero revenues, these costs will be accumulating losses.
Once lockdown ends, little additional expenditure will be required to complete pre-sold houses and release a lot of cash back into the business, swiftly restoring the balance sheet.
We can debate the health of the housing market after the lockdown and the profitability of the housebuilders, but they will be entering this period in a state of fundamental financial strength and we would expect some element of dividends to follow soon after.
The businesses we worry about more are those multi-nationals with large cost bases that do not fit easily into government support schemes.
These businesses will see balance sheets deteriorate not because of working capital flows, which should also swiftly correct, but because of heavy accumulated operating losses.
When normality returns, there will likely be a prolonged period in which cashflow will be diverted to rebuilding balance sheet strength. These dividend holidays could last for several years.
This looks to be another example where conventional wisdom about business resilience does not sit well with the challenges of today - a great hunting ground for mispriced assets.
David Kneale is head of UK equities at Mirabaud Asset Management
• The current environment is a great hunting ground for mispriced assets
• Housebuilders entered this period with strength and dividends could soon return
• Large multinationals do not fit easily into government support schemes
• Dividend holidays could last for many years in order to rebuild balance sheets