To a first approximation it’s a dead loss. If you see 50% demand shortfall on a 100k monthly revenue for 3 months, and say your open falls from 50k to 25k, and capex stays same (assuming no debt relief/restructuring), you’ve basically lost 75k income for the year, period
-
-
Show this thread
-
That’s off gross margin. If your SAG is high enough, you’ll be in the red for a quarter. If your cost of capital us high enough, you might never catch up.
Show this thread -
-
At most a lot of discretionary spending will see a small spike that will recover a small amount of lost ground. When aggregate demand return to pre-Covid levels it will be distributed very differently, a lot heavier on the lower part of Maslow pyramid.
Show this thread
End of conversation
New conversation -
-
-
How do I use pent-up demand in a sentence
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
Latent demand, however...
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
In the minds of people advocating for this: I don't think it's the demand that is "pent-up" I think it's the disposable income or available credit lines.
-
A lot of the disposable income doesn’t exist through the pandemic. The credit will almost entirely go towards minimal viable rescue.
End of conversation
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.