75% of Brazilian Companies Fail to Hit 10% Return as Interest Rates Soar

INSUBCONTINENT EXCLUSIVE:
The study, analyzing 261 listed companies over 12 months, found an average profitability of 7.76% per year.A staggering 45 firms reported
negative returns
Assessoria, points out that high interest rates discourage corporate investments and innovation
expenses further erodes profitability
In addition, few companies manage to overcome these challenges.75% of Brazilian Companies Fail to Hit 10% Return as Interest Rates Soar
(Photo Internet reproduction)Corporate Sector ResilienceWEG, a global leader in its sector, stands out with a 30% annual return
Ambev and Vale also perform well, leveraging their market dominance
conditions
With slim profit margins and reliance on debt for inventory management, retailers are hit hard by rising interest rates.While some, like RD
adjustment from the federal government, businesses may continue to face profitability challenges
This situation highlights the need for a balanced approach to economic policy.Controlling inflation is crucial, but we must actively
consider its impact on business growth and investment
As Brazil navigates these economic waters, the resilience and adaptability of its corporate sector will be put to the test.