16.11. Stress Test

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Stress Test

The stress test allows (both on historical and prospective data) to identify changes in Revenues, Costs, Customer Credits, Supplier Debts and Inventories is cause a significant alteration of the economic, equity and financial profile and any anomalies.

For each accounting period, the economic variations that determine the elimination of theEBIT or changes in assets that lead to the elimination of liquidity

Any anomalies on the main indicators relating to the current scenario are included at the bottom of the table

Any alternative scenarios (determined by a different reclassification, rectification or simulation) determine a result consistent with the simulations carried out

The module Stress Test è available:
- In Home Page firm
- In the indices of Historical data of the Business Plan, the Benchmark and Groups
- At the bottom of the tables of Income Statement, Balance Sheet
- In the Commented Report
- Nell Presentations in-depth or personalized

How to interpret the results?

Starting from the table below, we note that, for the current scenario, they are present anomalies only in 2020; In fact it turns out that:

• EBIT <0
• Profit < 0
  It follows that the company, in 2020 NOT was in economic equilibrium
  

In fact, the table above shows that, in 2020, to obtain a EBIT>0, all other hypotheses or scenarios being equal, it should have increase revenues by 91,93%
or
all other hypotheses or scenarios being equal, it should have reduce fixed costs by 49,44%

Also in the period it is noted that the company has sufficient liquidity to increase customer credit collection times (DSO) up to 77 days compared to the current value, or reduce the supplier payment time (DPO) up to 70 days.

Since this is a service company, any changes, even significant, in inventories would not have an impact on the shareholders' equity.