Turnover is not representative in the current report format: it includes internal transactions eg. farm to warehouse, so it doesn't mean you actually have to sell anything to the outside to make turnover!
Turnover/asset ratio is also not really representative, especially due to the valuation of technology. Some products just need high investments and have a small return, turnover/asset ratio-wise, it really depends on the type of business.
Another thing - not starting to complain but just looking at the facts - is the lack of players; a few of the remaining players have built very strong businesses with resources and high technology, but there is not enough buyers anymore for the output, so instead of ongoing conversion of investments into turnover, enabling re-investments - we're still making turnover by selling the goods to our warehouses -- but few sales happen and prices keep spiraling down. machinery sold at 120K 30 days is offered for 50 K now ago but stays in the warehouse.
The best way to increase turnover right now is to do your own retailing, and increase prices in the shops.
Undercutting prices by 20-50% just to gain a bit of market share is cutting profits of everyone in the retail business. If everyone increase prices regularly i speculate that we could sell for example meat @ 500 in some cities soon. |