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Boost your company's financial health with our Profitability Analysis Template, a comprehensive workflow aimed at assessing, optimizing, and communicating better profit strategies.

1

Identify the time period for analysis

2

Gather and compile financial data

3

Calculate gross profit

4

Calculate operating profit

5

Calculate net profit

6

Identify all fixed and variable costs

7

Calculate gross profit margin

8

Calculate operating profit margin

9

Calculate net profit margin

10

Analyse the trend in profitability ratios

11

Calculate return on investment

12

Calculate return on equity

13

Analyze the trend in return ratios

14

Compare the profitability ratios with industry peers

15

Draft an initial profitability analysis report

16

Approval: Initial Profitability Analysis Report

17

Incorporate necessary changes after approval

18

Prepare the final profitability analysis report

19

Present the profitability analysis report to stakeholders

20

Approval: Final Profitability Analysis Report