Trends In Profitability - Financial Reporting and Analysis

Exhibit shows profitability trends for manufacturing for the period 1965-1998.

Operating profit compared with net sales declined substantially over this period. Net income compared with net sales fluctuated substantially. This ratio recovered in recent years from alow in 1992. In general, there has been a decline in profitability. This decline in profitability probably occurred due to factors such as an increase in competition domestically and internationally.

The decline in profitability indicates an increase in the risk of doing business.

Trends In Profitability

Trends In Profitability


All rights reserved © 2018 Wisdom IT Services India Pvt. Ltd DMCA.com Protection Status

Financial Reporting and Analysis Topics