Profitability Analysis Homework Paper

Every organization aims to maximize its profits. To know whether the organization is earning the required profit or not, profitability analysis is performed. Profitability analysis can be performed by analyzing the organizationâ€™s output. The organizationâ€™s output includes products, location, customers, channels, and transactions.

Organizations record all their transactions related to the cost incurred in production along with revenue earned during an accounting period. The statement that reveals all the costs or expenses and the income or revenue earned is known as income statement. This statement can be used by employees, managers, investors, and other stakeholders to determine the companyâ€™s profitability.

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Profitability Analysis Homework Paper
Just from $9/Page Ways to do Profitability Analysis: Profitability ratios, break-even analysis, and return on investment are the common ways to determine whether the current business is profitable or not. There are various profitability ratios that can be computed to know the companyâ€™s ability to generate profits. Some of them are as follows: Gross Profit Margin Ratio: Gross profit margin ratio is based on two variables that are sales and the cost of goods sold. It is the ratio of gross profit to net sales. It is a good measure of profitability when the gross profit ratio of the company over a time period is compared. This can be computed using a very simple formula, which is as follows: \text{Gross profit margin ratio}=\frac{\text{Gross profit}}{\text{Sales}}\times 100Gross profit margin ratio= Sales Gross profit â€‹ Ã—100 Gross profit is computed using the following formula: \text{Gross profit}=\text{Sales}-\text{Cost of goods sold}Gross profit=Salesâˆ’Cost of goods sold If the gross profit margin ratio is high, then it means the company is earning higher profit over the cost of production. The company must try to maintain stability in earning such a profit margin. Net Profit Margin Ratio: This ratio reveals the true profitability of an organization after paying tax obligation. This ratio can be calculated using the following formula: \text{Net profit margin ratio}=\frac{\text{Net income after taxes}}{\text{Sales}}\times 100Net profit margin ratio= Sales Net income after taxes â€‹ Ã—100 The net profit margin ratio reveals the managementâ€™s efficiency in producing and selling the products. Operating Profit Margin Ratio: This ratio indicates the current earning power of the company. It acts as a yardstick to measure the firmâ€™s ability to turn its sales into pre-tax profit. This can be computed using the following formula: \text{Operating profit margin ratio}=\frac{\text{Sales}-\text{Operating cost}}{\text{Sales}}\times 100Operating profit margin ratio= Sales Salesâˆ’Operating cost â€‹ Ã—100 Figure 1: Ways to do profitability analysis Figure 1: Ways to do profitability analysis Break-even Analysis: The break-even point is the point at which cost incurred is equal to the revenue earned. This is the situation where the company earns no profit and incurs no loss. Any number of units sold above this point will generate profit. The break-even point can be calculated as follows: \text{Break-even point}\left( \text{in units} \right)=\frac{\text{Fixed cost}}{\text{Units selling price}-\text{Units variable cost}}\times 100Break-even point(in units)= Units selling priceâˆ’Units variable cost Fixed cost â€‹ Ã—100 Return on Assets (ROA) and Return on Investment (ROI): These are the other profitability measures where return on assets indicates how efficiently the firm is operating and return on investment reveals about how much the firm is earning as compared to the investment made. The ROI and ROA can be calculated using the following formula: \text{Return on Assets}=\frac{\text{Net income before taxes}}{\text{Total Assets}}\times 100Return on Assets= Total Assets Net income before taxes â€‹ Ã—100 \text{Return on Investment}=\frac{\text{Net income before taxes}}{\text{Net worth}}\times 100Return on Investment= Net worth Net income before taxes â€‹ Ã—100 Get Professional Assignment Help Cheaply Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent? Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments. Why Choose Our Academic Writing Service? • Plagiarism free papers • Timely delivery • Any deadline • Skilled, Experienced Native English Writers • Subject-relevant academic writer • Adherence to paper instructions • Ability to tackle bulk assignments • Reasonable prices • 24/7 Customer Support • Get superb grades consistently Online Academic Help With Different Subjects Literature Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists. Finance Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts. Computer science Computer science is a tough subject. Fortunately, our computer science experts are up to the match. No need to stress and have sleepless nights. Our academic writers will tackle all your computer science assignments and deliver them on time. Let us handle all your python, java, ruby, JavaScript, php , C+ assignments! Psychology While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent. Engineering Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper. Nursing In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices. Sociology Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment. Business We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty! Statistics We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done. Law Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction. What discipline/subjects do you deal in? We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline. Are your writers competent enough to handle my paper? Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable. What if I don’t like the paper? There is a very low likelihood that you won’t like the paper. Reasons being: • When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills. • We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade. In the event that you don’t like your paper: • The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge • We will have a different writer write the paper from scratch. • Last resort, if the above does not work, we will refund your money. Will the professor find out I didn’t write the paper myself? Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results. What if the paper is plagiarized? We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch. When will I get my paper? You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it. Will anyone find out that I used your services? We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened. How our Assignment Help Service Works 1. Place an order You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions. 2. Pay for the order Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization. 3. Track the progress You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper. 4. Download the paper The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper. GET A PERFECT SCORE!!! How it works Fill in the order form 01 Provide your payment details 02 YOUR WRITER IS WORKING ON YOUR CUSTOM PAPERS 03 Get your completed work! 04 Try our service with 15% OFF your first order Why us US-BASED COMPANY with certified writers ALL SUBJECTS and academic levels premium quality 24/7 SUPPORT Activity 1141 Preparing orders 424 Completed orders 782 Active writers 94.2% Satisfied customers Try Custom Paper Writing Service Today Order Essay Papers Now! Profitability Analysis Homework Paper Every organization aims to maximize its profits. To know whether the organization is earning the required profit or not, profitability analysis is performed. Profitability analysis can be performed by analyzing the organizations output. The organizations output includes products, location, customers, channels, and transactions. Organizations record all their transactions related to the cost incurred in production along with revenue earned during an accounting period. The statement that reveals all the costs or expenses and the income or revenue earned is known as income statement. This statement can be used by employees, managers, investors, and other stakeholders to determine the companys profitability. Don't use plagiarized sources. Get Your Custom Essay on Profitability Analysis Homework Paper Just from$9/Page

Ways to do Profitability Analysis:
Profitability ratios, break-even analysis, and return on investment are the common ways to determine whether the current business is profitable or not. There are various profitability ratios that can be computed to know the companys ability to generate profits. Some of them are as follows:

Gross Profit Margin Ratio: Gross ratio is based on two variables that are sales and the cost of goods sold. It is the ratio of gross profit to net sales. It is a good measure of profitability when the of the company over a time period is compared. This can be computed using a very simple formula, which is as follows:

text{Gross profit margin ratio}=frac{text{Gross profit}}{text{Sales}}times 100Gross profit margin ratio=
Sales
Gross profit

100

Gross profit is computed using the following formula:

text{Gross profit}=text{Sales}-text{Cost of goods sold}Gross profit=SalesCost of goods sold

If the gross profit margin ratio is high, then it means the company is earning higher profit over the cost of production. The company must try to maintain stability in earning such a profit margin.

Net Profit Margin Ratio: This ratio reveals the true profitability of an organization after paying tax obligation. This ratio can be calculated using the following formula:

text{Net profit margin ratio}=frac{text{Net income after taxes}}{text{Sales}}times 100Net profit margin ratio=
Sales
Net income after taxes

100

The net profit margin ratio reveals the managements efficiency in producing and selling the products.

Operating Profit Margin Ratio: This ratio indicates the current earning power of the company. It acts as a yardstick to measure the firms ability to turn its sales into . This can be computed using the following formula:

text{Operating profit margin ratio}=frac{text{Sales}-text{Operating cost}}{text{Sales}}times 100Operating profit margin ratio=
Sales
SalesOperating cost

100

Figure 1: Ways to do profitability analysis
Figure 1: Ways to do profitability analysis

Break-even Analysis: The break-even point is the point at which cost incurred is equal to the revenue earned. This is the situation where the company earns no profit and incurs no loss. Any number of units sold above this point will generate profit. The break-even point can be calculated as follows:

text{Break-even point}left( text{in units} right)=frac{text{Fixed cost}}{text{Units selling price}-text{Units variable cost}}times 100Break-even point(in units)=
Units selling priceUnits variable cost
Fixed cost

100

Return on Assets (ROA) and Return on Investment (ROI): These are the other profitability measures where return on assets indicates how efficiently the firm is operating and return on investment reveals about how much the firm is earning as compared to the investment made. The ROI and ROA can be calculated using the following formula:

text{Return on Assets}=frac{text{Net income before taxes}}{text{Total Assets}}times 100Return on Assets=
Total Assets
Net income before taxes

100

text{Return on Investment}=frac{text{Net income before taxes}}{text{Net worth}}times 100Return on Investment=
Net worth
Net income before taxes

100

Get Professional Assignment Help Cheaply

Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?

Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.

Why Choose Our Academic Writing Service?

• Plagiarism free papers
• Timely delivery
• Skilled, Experienced Native English Writers
• Ability to tackle bulk assignments
• Reasonable prices

Online Academic Help With Different Subjects

Literature

Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.

Finance

Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.

Computer science

Computer science is a tough subject. Fortunately, our computer science experts are up to the match. No need to stress and have sleepless nights. Our academic writers will tackle all your computer science assignments and deliver them on time. Let us handle all your python, java, ruby, JavaScript, php , C+ assignments!

Psychology

While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.

Engineering

Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.

Nursing

In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.

Sociology

Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.

We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!

Statistics

We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.

Law

Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.

What discipline/subjects do you deal in?

We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.

Are your writers competent enough to handle my paper?

Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.

What if I don’t like the paper?

There is a very low likelihood that you won’t like the paper.

Reasons being:

• When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
• We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.

In the event that you don’t like your paper:

• The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
• We will have a different writer write the paper from scratch.
• Last resort, if the above does not work, we will refund your money.

Will the professor find out I didn’t write the paper myself?

Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.

What if the paper is plagiarized?

We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.

When will I get my paper?

You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.

We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.

How our Assignment Help Service Works

1. Place an order

You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.

2. Pay for the order

Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.

3. Track the progress

You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.

The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.

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