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Focus Management Group: July Month in Review

Each month we post an overview article that covers our recent company articles, announcements, and insights. Below is for the month of July.

 
Focus Management Group - labor

What Are the Top Cybersecurity Concerns for 2022?


There is a cyber-attack every 11 seconds! And the largest payment last year was $40 MILLION made by an insurance company!


With the second half of 2022 underway, it is a good time to evaluate cybersecurity issues and concerns. The cybersecurity front continues to be an area of significant risk for businesses.


In this article we will explore recent trends, and specific industries at more risk of attack.


Are you protected? Find out below...


 
Focus Management Group - food inflation

How Does a Business Improve its Performance Today? Analyze, Manage, and Adapt!


Last week the June CPI and PPI were published. With a CPI of 9.1% in June, the CPI is once again at a 40 year high. Consumers are confronted with spending more.


The June PPI was 11.3%, with energy reporting a 54.4% increase, transportation & warehousing increasing 23.0%, and food increasing 12.7%. This means businesses are seeing expenses increase month over month and year over year, and financial performance continues to be stressed in margins, EBITDA, and the ability to service debt.


Businesses and consumers are experiencing cost increases that are not offset by wage or revenue growth. Outlooks are becoming more negative, and businesses and consumers are struggling with how to navigate this economic environment. Consumers have already changed buyer habits, which in turn impacts businesses providing the goods and services to consumers.


What can a company do to respond to these trends?


 
Focus Management Group - auto vehicle market

What Tools Help a Business Deal with Rising Interest Rates, Cash Flow Needs, and Covenant Compliance?

Much of the discussion and concern regarding the financial performance of businesses has centered on inflation, supply chain problems, labor issues, and commodity price fluctuations. These factors certainly put net income performance at risk.


This article explores how to deal with increased operating expenses, and then examines the impact of increased interest rates on cash flow and loan covenant compliance.


The increased costs that businesses are experiencing, especially related to labor, warehousing and transportation, energy, and food means companies are feeling EBITDA pressure before the impact of higher interest rates.


Financial analysis often separates the winners from the losers, but in an economic period such as the one we are experiencing in 2022, financial analysis is not a luxury. It is a requirement.


Read more below...


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