Profitability Analysis

62 Pages Posted: 6 Apr 2022 Last revised: 25 Oct 2023

Doron Nissim

Columbia University - Columbia Business School

Date Written: March 23, 2022

This study describes a comprehensive profitability analysis that introduces several novel ratios and decompositions. Key innovations relate to the separation and analysis of activities other than operating and financing, and, most importantly, to the decomposition of operating profitability. Three drivers of operating profitability are analyzed: profit margin, asset turnover, and a funding ratio that measures the proportion of operating assets funded by capital. The empirical analysis demonstrates the informativeness of the various decompositions as well as the effectiveness of the methodology used for estimating transitory income and other components of the reformulated financial statements.

Keywords: Profitability, financial statement analysis, DuPont analysis, earnings persistence, special items, recurring earnings, core earnings, earnings quality, free cash flow, forecasting, valuation

JEL Classification: G12, G17, G31, G32, M41

Suggested Citation: Suggested Citation

Doron Nissim (Contact Author)

Columbia university - columbia business school ( email ).

NY United States 212-854-4249 (Phone)

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IMAGES

  1. Thesis

    thesis on profitability analysis

  2. Chapter 10

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  3. (PDF) COMPARATIVE PROFITABILITY ANALYSIS AMONG ELECTRIC TRICYCLE

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  4. What is Profitability Analysis?

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  5. The profitability analysis the proposed practice scenario Improved

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  6. 9+ Profitability Analysis Templates

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VIDEO

  1. Part 7: Financial Statements Analysis (Financial Ratios or Ratio Analysis)

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  4. CHAPTER-4 OF A THESIS

  5. 3.5 PROFITABILITY AND LIQUIDITY RATIO ANALYSIS / IB BUSINESS MANAGEMENT / gross profit margin, ROCE

  6. Thesis vs dissertation: what's the diff? #coding #rstats #intor

COMMENTS

  1. PDF Profitability Analysis

    Relatedly, profitability analysis applied at the aggregate level provides insight relevant for forecasting real economic activity ( Konchitchki and Patatoukas 2014), essentially by informing on the economy's stage in the business cycle. Similarly, aggregating profitability ratios at the industry level helps in.

  2. An Analytical Study on Profitability Analysis of Selected Private Banks

    This study examines the profitability analysis of the selected private bank such as Axis bank, ICICI bank, and South Indian Bank. The data analysed through various profitability r atios. This ...

  3. PDF Developing Customer Profitability Analysis From the Perspective of

    profitability analysis, depreciation, fixed costs ... The objective of the thesis is to investigate the case company challenges related to the allo-cation methods of fixed costs and depreciation within the activity-based costing system. In addition, study how the activity-based costing system could be improved to make better de- ...

  4. PDF Profitability Analysis

    profitability ratios. Section 4 explains each step in the profitability analysis and the insights it may provide, except the analysis of operating profitability. Section develops 5 a novel decomposition of operating profitability and compares it to alternative approaches. Section presents the 6 empirical evidence, and Section 7 concludes. 2.

  5. A Comparative Study of Liquidity and Profitability Analysis of Nepalese

    Liquidity and Profitability Analysis of Nepalese Commercial Bank ", successfully. The research committee has registered the dissertation for further progress. It is recommended to carry out the work as per suggestions and guidance of supervisor Asso. Prof. Dr. Kapil Khanal and submit the thesis for evaluation and viva voce examination.

  6. Profitability Analysis by Doron Nissim

    Key innovations relate to the separation and analysis of activities other than operating and financing, and, most importantly, to the decomposition of operating profitability. Three drivers of operating profitability are analyzed: profit margin, asset turnover, and a funding ratio that measures the proportion of operating assets funded by capital.

  7. Thesis

    To the government Profitability analysis helps the government to monitor the financial health of banks and ensure they comply with regulations. The government can use profitability data to assess the risk profile of banks and determine if they are following sound risk management practices. ... Thesis - Its deals with profitability analysis of ...

  8. Profitability Analysis of Commercial Banks in Nepal

    Profit maximization is one of most important objectives of commercial banks because survive and face competition in competitive business environment at long term.This study examines the profitability analysis of selected commercial banks in Nepal. In order to investigate the profitability analysis, 5 commercial banks have been taken as

  9. Profitability in Commercial Bank

    & profitability analysis; EBL was a leading bank than NABIL by analyzing as explained financial indicators. In an unpublish ed master's t hesis applied concept of Ishfaq, M. J. (2015) [1 0].

  10. PDF Designing a profitability analysis tool for SATO Oyj

    tional pricing, components of CVP analysis, and customer profitability. The conclusions and suggestions to the commissioning party were reached by critically ana-lyzing the thesis process, and include recommendations for further researching customer behavior and development ideas on improving cost structures and analysis of profitability. Keywords

  11. PDF Profitability Analysis (A comparative study of SAIL & TATA Steel)

    Abstract: The main purpose of a business unit is to make profit. The profitability analysis is done to throw light on the current operating performance and efficiency of business firms. It should be duly noted that net income figure alone is not very helpful in determining the efficiency and performance of the business firm unless it is related ...

  12. All Thesis

    PROFITABILITY ANALYSIS OF LAXMI BANK LTD. & SIDDHARTHA BANK LTD. By: DIPIKA NEUPANE Shankar Dev Campus Campus Roll Number: 1230/ TU Registration Number: 7- 2 - 426 - 09 - 2002 A THESIS SUBMITTED TO OFFICE OF THE DEAN FACULTY OF MANAGEMENT TRIBHUVAN UNIVERSITY In Partial fulfillment of requirement for the degree of Master's of Business Studies (M.B) Kathmandu, Nepal October 2010

  13. PDF A Study of Liquidity and Profitability Relationship: Evidence From

    These difference in relationship of liquidity and profitability could lead to a difference in management of the liquidity. This study will examine the relationship between liquidity and profitability in Agriculture and Consumer Goods sectors in Indonesia between 2005 - 2013. Those two sectors are chosen because they are deemed to be the major ...

  14. PDF Profitability in Commercial Bank

    & profitability analysis; EBL was a leading bank than NABIL by analyzing as explained financial indicators. In an unpublished master's thesis applied concept of Ishfaq, M. J. (2015) [10]. had used annual general report of NBL and HBL from 2010/11 to 2014/15. The researcher had a panel data model while analyzing the data.

  15. An Empirical Analysis of the Profitability of Technical Analysis ...

    An Empirical Analysis of the Profitability of Technical Analysis Across Global Markets The Case of Equities, Commodities and Foreign Exchange Rates ... The thesis has the following layout: Chapter 2 covers some important aspects of technical analysis and its origins. This if followed by a discussion about the efficient market hypothesis

  16. (PDF) PROFITABILITY ANALYSIS -A STUDY CASE ...

    The paper aimed to present a case study of profitability analysis based on ratio method in order to evaluate the financial performance at AGROINDUSTRIALA Joint Venture Dairy Farming Company. Based ...

  17. BBS Project Nabil(Rubina)

    Financial statements of latest 5 years (20 72 /73 to 2077/78) have been taken as sample for the comparative analysis of Profitability ratio. The recommendation and suggestions, which are derived from the study, by taking the above commercial banks as samples, will be equally useful for the other commercial banks in Nepal.

  18. Thesis BBS 4th Year Profitability Analysis of NEA Rashi FINALE

    This document analyzes the profitability of Nepal Electricity Authority (NEA) through various financial ratios. It calculates profitability ratios such as gross profit margin, net profit margin, return on assets, return on equity, earnings per share, and book value per share for NEA using its financial data from fiscal years 2015/16 to 2019/20. The analysis finds that most profitability ratios ...

  19. Profitability Analysis of Nepal SBI Bank LTD

    Profitability Analysis of Nepal SBI Bank Ltd - Free download as PDF File (.pdf) or read online for free.

  20. ANALYSIS MODELS OF PROFITABILITY IN AGRICULTURE

    Thesis, Oradea 2011. p 57-107 Acce ss at : ... In this article there is developed a synthetic theoretical framework regarding the profitability analysis through economic and .

  21. (DOC) A Study On Profitability Analysis At

    This study focuses on the analysis of profitability position, financial system, profit margin and expenses ratio. This study is based on secondary data for a period of fifteen years from 2000 to 2015. In this duration of study, the researcher has used multiple regression analysis for the testing of the hypotheses.

  22. Profitability Analysis of Nic Asia Bank Limited

    This document is a profitability analysis project report submitted by a student to Tribhuvan University for their Bachelor of Business Studies degree. The report analyzes the profitability of NIC Asia Bank's Biratnagar Main Road branch located in Nepal. It includes the student's name, registration number, campus, exam roll number, mobile number, and their finance study group. The report was ...

  23. Profitability Analysis for Microalgae Cultivation in Finland

    The thesis is divided into different sections. It started by presenting the theoretical framework which included the necessary literature related to management's accounting and key indicators which are important for profitability analysis. Different methods of performing the analysis were also discussed.