Profit in simple terms means excess revenue over expenses over a period. It also means the total income earned by the company over a period. Every business needs profit to survive and grow.Â Profit is also the index of a nation growth and is also the index of economic growth. The rise of the standard of living of citizens will change for good if a country registers profit economic growth.
Â The term profitability means the ability of a business firm to make the profit from all its activities. Profitability also points out to the ability of management to make optimal use of all the resources available to them. However, the term profitability is not gauged in the same manner as efficiency. The extent of profitability is never considered as a final answer on efficiency.
There, is more depth to the concepts and there are many profitability public homework help available online.
Different viewpoints about Profitability Analysis
Financial students need to know that there are divergent views on profitability analysis. In layman language, it is inferred as follows. The business needs profits to survive, and every company needs to retain and attract new customers to turn their business into profit.Â The revenue and cost of the firm are analyzed in profitability analysis.
There is a principle in marketing which says that 20 % of the customers do contribute to 80% of the profit and industries do concentrate on retaining existing customers and also trying to attract new customers. A customer who brings more revenue when compared to the cost of servicing done to the same client is termed as profitable.
There is more to the concept of profitability analysis than the layman concept mentioned above, and that is more technical in nature. Some experts would offer profitability public homework help. The experts would cover the topics like ratios and their inference.
Why ratio analysis is tricky
Profitability ratio analysis is necessary to know the real position of the company.Â There are different types of ratios that have different inferences. To know the real financial position of company from a shareholder point of view, a type of ratio analysis is used. To understand the company financial position from an owner point of view, another ratio is used. There is a ratio to understand how a company has gained profit and there are different inferences possible to the situation of making a profit. So to understand these matters in detail an expert profitability public homework help is needed and would help the students to move upward in a financial career.
The common problems faced by students in class
Ratios are formulae based. Some ratios contain a long formula, and various terminologies can cause confusion in the minds of the students. The students would face difficulty to know which ratio is used in which situation and if a wrong ratio is used in a situation that can cause wrong inference. The efficiency of the company is found out using a ratio and if the student does not make the right ratio check a wrong inference is made, and that would affect the overall analysis of the company.
Sometimes a teacher or a faculty would not find that a particular student has not grasped the ratios and they would continue the teaching. Without knowing the basics, the student would find difficult to grasp the ratios, and that can affect the learning process.
Profitability public homework help from experts would make sure that real business examples are taught. That would help the students to understand the concept better.
There are situations in which the student gets only less time for leisure, and the student may not spend as much time in knowing profitability analysis. It is in these moments an expert help is needed, and they help in proper time management and helps in knowing the topic better.
If the deadline for submitting homework is less,Â Â the student may not have enough time to cover the topic in the best manner. Profitability public homework help is the best solution for that situation and would help students to understand the topic better.
Helps offered in ratio analysis
There are many ratios that should get covered under the broad topic of Profitability analysis.Â The expert help is offered on various topics like
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