Mapogos Capital reposted this
Founder of Mapogos Capital | 3x Scholar | Future Leader Scholar at WBS | Innovation Fellow at WID |
📈 Why is debt increasing for Auto-Makers and Retail Stores? 1. Supply Chain Disruptions: Issues like semiconductor shortages have disrupted production and increased costs. 2. Investment in Innovation: Heavy investments in electric and autonomous vehicle technologies are driving up debt levels. 🏦 Automakers prefer to maintain their 💵 cash reserves for operational flexibility and unforeseen expenses. By using debt financing, they can preserve their liquidity while still funding large-scale projects. 🏬Retail Sector: 📲 Shifts to E-commerce: Accelerated online shopping trends have forced significant investment in e-commerce capabilities. ⚡ Operational Costs: Rising logistics and labour costs, along with the need to maintain physical stores, are contributing to higher debts. It is now more important than ever to implement : 1. Risk Management and Stress testing ( especially considering the current climate of Interest Rates). 2. New costing systems. 3. Develop your Working Capital Management systems. Mapogos Capital can help you with all of the above. #AutoIndustry #RetailSector #business #DebtFinancing #Innovation #ElectricVehicles #SupplyChain #AutomotiveTrends #EconomicGrowth #BusinessStrategy
