Profitability Analysis
What is Profitability Analysis?
Profitability analysis is a process used by businesses to determine the actual profit earned from a particular business activity. It helps to evaluate the financial performance of various aspects of a business, such as products, services, customer segments, or marketing campaigns, to identify which areas are most profitable and which ones are underperforming. This analysis often involves calculating revenue, costs, and profit margins to inform strategic decisions related to resource allocation, pricing strategies, and investment opportunities.
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