Margenkompression
Margenkompression, in business and finance often called margin compression in English, describes a trend in which profit margins decline over time even as sales may grow or remain flat. It occurs when average selling prices fail to keep pace with rising costs, or when a company’s product mix and pricing practices erode profitability.
Causes of Margenkompression include input price inflation for raw materials and energy, higher logistics and distribution
Margins are commonly tracked using gross margin and operating margin. Gross margin reflects the relationship between
The consequences of Margenkompression can be significant, reducing earnings, limiting investment capacity, and affecting shareholder value.
Margenkompression is a cross-industry concern, especially in retail, manufacturing, and sectors facing volatile input costs. Understanding