Berlin Inflation is high, credit is expensive and fears of a recession are ever-present: German companies will have to contend with a whole range of challenges in the coming quarters. Handelsblatt stock exchange expert Ulf Sommer has examined the balance sheets of dozens of Dax and MDax companies and examined their crisis resistance.
In the podcast he talks about why you should look at other balance sheet ratios such as cash flow or debt levels in addition to net profit. Sommer also explains why EBIT margin is perhaps the most important metric when it comes to determining how resilient a given company is.
Overall, the conclusion is positive: “The liquidity of the companies has almost reached a record high, at the same time the level of debt has fallen,” says Sommer.
In addition, Markus Fasse, co-head of the company department, talks about the faltering electric turnaround at Mercedes. Electric cars and plug-in hybrids should actually account for half of sales from 2025. Now it should take until 2026 for that to happen.
More: Germany’s companies are so well prepared for crises
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