The quality or state of being profitable ; capacity to make a profit. Thank you for reading this guide to analyzing and calculating profitability ratios. Paying $10 billion for Autonomy was HP’s resolution to regain market position and profitability,” says Williams. Partially because of these problems, the specialty which gained in distinction and profitability right now was dairy farming.\n\nAssuming that the cash move calculated does not embody the investment made in the challenge, a profitability index of 1 indicates breakeven. As the value of the profitability index increases, so does the financial attractiveness of the proposed challenge. Profitability of sth The performance of each department or activity may be judged as well as the overall profitability of the product.\n\nIn addition, after all, you nearly actually also started your corporation to generate earnings. This training guide will introduce you to several methods that can allow you to analyze your company’s operations and compute the profitability of your corporation.\n\nAmong the tools to which you may be introduced are profitability ratios, break-even analysis, return on property and return on investment. Watch Out For…Before you get started, you or your bookkeeper should have prepared an income (or profit and loss) statement for your corporation.\n\nThe strategies to which we might be introducing you on the following pages are supposed to make your income statement more understandable and meaningful for you. If an income statement has not been prepared, the data beneath on setting up a typical dimension income statement is not going to be of much relevance, and the information you need for break-even analysis may be missing.