Finance problems on ebitda, contribution,, break even, sustainable
When comparing H2Oh!’s sales growth rate with its maximum sustainable growth rate, it is clear that the former is significantly higher than the latter. This means that the firm will not be able to sustain this level of growth through internally generated funds alone and will need to look for other sources of financing in order to support future expansion.
However, there are a few strategies which can help alleviate this issue. Firstly, cost-cutting measures can be implemented so as reduce overall expenses allowing more money be reinvested into company’s operations. Secondly, debt financing can also employed if necessary – although care should taken when taking on such liabilities due potential long-term implications associated with them.
Finally, another option could involve issuing new equity/shares order raise additional capital needed fund growth initiatives. Although this may dilute existing shareholder value slightly (due addition shares outstanding) it still provides firm access fresh funds without taking on too much risk thus making it attractive option many cases.
Overall then, while H2Oh!’s current sales growth rate much higher than what its internal resources able support – by exploring various options available company may still able achieve desired outcomes within acceptable levels of risk
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