Do you want to learn more about profitability analysis but aren’t sure where to start?

Understanding your company’s profitability is critical for making sound decisions that can lead to increased financial success.

Profitability analysis is a financial tool used by businesses to determine how efficiently they make a profit in relation to their revenues, costs, and overall investments. Knowing where profits are coming from and where possible leaks could be will help you better guide your company toward long-term success and growth. Also, profitability analysis helps you understand your company’s financial health, allowing you to make the best decisions for future growth and sustainability. 

How to do a profitability analysis

A good analysis could help cure your anxiety when it comes to business it can tell you what you should do to grow your business. All you need to do is consider the following 3 things: 

  1. Your profit margins
  2. Customer lifetime value
  3. Past business numbers

What would make the whole process much easier is having a digital tool you can rely on. Because it will make everything faster. My recommendation for an excellent digital accounting tool (based on years of experience with it) is in the video below.

In it, I explain more about how to do a profitability analysis. And, I include more information so that everything makes perfect sense!


In summary, understanding your company’s financial base is not only beneficial but also critical for making sound decisions that move your business ahead. You need to equip yourself with the information needed to perform extensive profitability analysis and turn insights into practical actions. Begin taking charge of your financial future today!

To make sure you have control over your finances, up your business numbers game with our software solution Budgetwhizz®. It makes keeping track of your cash flow and financial planning easier. It helps you stay organised so you can focus on what matters to you; the creative work and the impactful change. Take a step away from the chaos with fast setup & easy navigation – numbers just got real…for the better! Get organised & make sense of it all with Numbers Knowhow® today!