Profit Analysis

Profit analysis is the process of reviewing a company's revenues and expenses to determine how much profit is being made. It helps identify which products, services, or departments contribute most to profits, and where costs can be reduced. By analyzing profit, businesses can make informed decisions to improve financial health, set prices, and plan future growth. Essentially, it’s a tool to understand the profitability of different aspects of a business, ensuring resources are allocated effectively to maximize earnings.