Question

Anyone can help me answer this question around 300 words each with typing and with link!!! need it asap!!! (finance statement analysis)

Profitability Analysis What does profitablilty analysis mean to you? Why do companies analyze profits? What is Analysis? Do you believe that it is necessary to analyze profits? Answer these questions and provide an article link that supports each of your answers.

Answer 1

Profitability analysis is a component of enterprise resource planning (ERP) that allows administrators to forecast the profitability of a proposal or optimize the profitability of an existing project. Profitability analysis can anticipate sales and profit potential specific to aspects of the market such as customer age groups, geographic regions, or product types.

Profitability analysis can help key personnel in an enterprise to:

• Identify the most and least profitable clients.
• Identify the most and least profitable products or services.
• Discover which sources of information offer the most reliable facts.
• Optimize responses to changing customer needs.
• Evolve the product mix to maximize profits in the medium and long term.
• Isolate and remedy the causes of decreasing profit margins.

Profitability is the primary goal of all business ventures. Without profitability the business will not survive in the long run. So measuring current and past profitability is very important. Profitability is measured with income and expenses. Income is money generated from the activities of business.   

Analysis is the process of breaking a complex topic or substance into smaller parts in order to gain a better understanding of it. The technique has been applied in the study of mathematics and logic since before Aristotle, through analysis as a formal concept is a relatively recent development.