Below is what I wrote in 2016 commenting on data collected in 2015:
I took inspiration in writing this article from a different article published on November 22, 2016 in the newspaper “GIORNALE DI BRESCIA” related to the study of the financial statements of companies from Brescia. It was edited by the University of Brescia and Price Waterhouse & Coopers. My purpose is to point out some elements and data that I found particularly interesting.
I took into consideration the 5 most important companies for turnover in Brescia in the Transfer Machines sector. The names, in addition to PORTA SOLUTIONS, are:
- GNUTTI TRANSFER
- BTB TRANSFER
- BUFFOLI TRANSFER
- PICCHI SRL
As often happens, when comparing budgets, the focus is immediately on the number that everyone is curious about and that the banks make you answer first: the TURNOVER!
At the top of the ranking by gross revenue we find GNUTTI TRANSFER, closely followed by BTB TRANSFER, followed by the other companies.
I want to point out that TURNOVER helps to understand how much business a company is doing, but does not express any indication about the company’s profitability.
We could have a company with a lot of turnover but is not very profitable or even with a minus sign before the result.
Intrigued by the opportunity that the University of Brescia offered by listing the financial statements of companies operating in our sector, I analyzed the figure that represents not the turnover of the companies in question but the profitability and economic efficiency of the management.
To be precise, I compared the ROI (Return on Investment). Consisting of the ratio between the result of ordinary operations and invested capital. This ratio expresses as a percentage the profitability that the company is able to obtain from the use of its technical capital. It is therefore an important indicator of the strength of the business and of the efficiency with which the business is managed.
Analyzing the 5 names, here is the ROI index and ranking for each company:
DATA SOURCE: www.creditsafe.com
HERE IS THE NEW BUDGET CLASSIFICATION 2017, WHERE BEYOND THE OVERTAKING OF GNUTTI, THERE WAS A NOTABLE INCREASE FROM PORTA SOLUTIONS
DATA SOURCE: www.creditsafe.com
From this ranking you can understand who can achieve better results and prospects from the ECONOMIC EFFICIENCY OF THE MANAGEMENT.
Obviously, the higher the percentage, the better the company’s profitability and strength.
Again, ROI is very important for understanding the health of the company, allowing us to understand if it is operating in an efficient and profitable way and if it is performing adequately in terms of the invested capital.
Personally, I control the ROI and use it within my company as a reference to spur the organization and set our growth objectives. That is, we want to keep above the average of our competitors (3.1%) and aim to remain absolute first!
All this was possible from the moment I started selling the “Flexible Production” method which represents an effective business model to be implemented at my customers.
If you want to go deeper on the topic of “Flexible Production”
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