Analysis of rentability
Profitability analyzes measure the company’s ability to generate profits. Their objective is to appreciate the net result obtained from certain decisions and policies in the administration of the company’s funds. They evaluate the economic results of business activity.
Profitability indicators express the company’s performance in relation to its sales, assets or capital. It is important to know these figures, since the company needs to produce profits in order to exist. They directly relate the ability to generate funds in short-term and medium-term operations.
Global Value Consulting offers to do a profitability analysis in your company through:
- Analysis of some financial ratios
- Analysis of profitability by product
- Business area
- Geographic area
- Sales force
- Billing vs profitability matrix.
Having an adequate complete profitability analysis of your company will allow financial, operational, commercial and strategic decision-making to have a lower risk of error and resources and assets can be redirected to the areas or areas of greatest profitability. In addition, it will be possible to analyze and see how the areas or activities that are not profitable or those that have the least positive profitability can be improved.