Profitability is an important factor for the long-term success of any business: to stay competitive, profitability must be actively managed and monitored. In a situation with insufficient income, prompt and decisive action is essential as any delays will diminish the options available. When is action needed?
Potential signs of profitability risks include:
- Increasing price pressure from key accounts
- Cost pressure from suppliers or rising market prices for commodities
- Direct competitors are more profitable
- Declining EBIT margin/ROCE over the last few quarters/years
- Covenants (e.g. EBITDA margin) cannot be maintained over the short- or medium-term
- Lack of transparency regarding contribution margins for products/customers/markets
- Discrepancies between estimated and actual costs
- Increased demand for external funding despite significant Capex investment
- Deep experience
In the preparation and implementation of bespoke programs to improve your company’s profitability, both during and after a crisis. If required, we also have the necessary expertise on hand to review the company’s strategy.
- Sustainable results
We are aware of the risks of implementation and plan for these in advance when preparing our recommended measures. Our results are well-founded and practicable to implement.
- Expert view
As external consultants, we offer an independent and goal-oriented perspective on the company’s situation that makes it easier to implement these measures. Our analysis can also be used as a basis for the independent evaluation of options and to facilitate transparent and legally secure robust decision-making.