Best Business and Loans Resources » credit http://www.profit-managing.com Manage your credit easily and efficiently Fri, 14 May 2010 08:28:49 +0000 en hourly 1 http://wordpress.org/?v=3.0 Industries with structural credit losses /industries-with-structural-credit-losses/ /industries-with-structural-credit-losses/#comments Mon, 26 Oct 2009 16:43:24 +0000 admin http://www.profit-managing.com/?p=112 Industries with structural losses have to be avoided because their profits will fall in recession and recovery as well. Defensive industries with structural gains will experience a rise in profits during the whole economic cycle.

Industry trends have to be monitored and projections about future trends have to be made because they will influence the profitability of an industry. Some major industry characteristics are:

  • Pricing and cost structures (evolution over time)
  • Domestic and international competition
  • Technological change (pace and adaptability)
  • Asset values
  • Upcoming financing needs
  • Potential liabilities
  • Political and regulatory environment
  • Government support
  • Current state of regulation/deregulation.
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