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To know how to analyse the profitability of each segment of

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Querist : Anonymous

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Querist : Anonymous (Querist)
27 February 2013 I am searching hard on the net but no relevant I found for the topic Profitability analysis for a particular division of an organisation. Pls tell me atleast the formula for calculate it..
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CA. Vikash Dwivedi

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CA. Vikash Dwivedi (Expert)
28 February 2013 you can compare Product mix ratio vis a vis contribution/ profit from the product to total profit. like wise sale of product to total sales.

this will give you fair idea proportion of producgt sale vs total sales, product share in the total products range likewise profitablity, contributions. expenses.

see some Qtrly results published in the newspaper of hte company whihc has number of segmetns (ITS, HUL etc)
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