Gain is the key, it is a business buzz word. For that reason we are defining a long term and a short term strategy, setting up new affiliated companies, consequently modifying products and services.
In general, there are two widespread accepted practices all over the world. One of them is focusing on tailoring costs, while the second one, which is undoubtedly more enthusiastic ,is related to the potential income – new potential income sources. It is not important which one from the proposed we choose at the moment, because with the solution specified below will follow both, which at the end positively affect our profitability measured by EBIT. It sounds like a manager’s dream but it is real with SAP REFX solution.
First, let’s focus on financial benefits
In a classic FinancialAnalysis, real estate positions in a balance sheet were seen as “non-income related”; they also influence a lot of indicators like ROA, ROE Du Pont or Basic Earnings Power Ratio. How to influence return on assets without causing a revolution? Increase your counter value with Net income, decrease the denominator with net book value. Naturally, one of the most popular methods involved a wide range of leasing types and/or outsourcing practice. ...