Profitability Analysis
Definition
Profitability Analysis is the assessment of the ability of a business to generate earnings as compared to its expenses and other relevant costs incurred during a specific period.
Benefits
Profitability analysis evaluates a company`s ability to generate earnings compared to its costs, informing business decisions.
Frequently Asked Questions
What is the profitability analysis? Profitability analysis assesses a business`s ability to generate earnings compared to its expenses and costs.
What is a profitability analysis quizlet? Profitability analysis is the assessment of a business`s ability to generate earnings compared to its expenses and costs.
What is the assessment of profitability? The assessment of profitability involves analyzing a company`s ability to generate earnings compared to its expenses and costs.
Summary
Profitability Analysis evaluates a company`s ability to generate earnings compared to costs.