Lower returns can have multiple implications for a business:
Reduced Investments: With lower returns, businesses may find it challenging to reinvest in growth opportunities. Cash Flow Issues: Lower profitability can lead to cash flow problems, affecting day-to-day operations. Shareholder Dissatisfaction: Investors may become unhappy with lower returns, affecting stock prices and company valuation. Employee Morale: Lower financial performance can impact employee morale and lead to higher turnover rates.