Profitability Evaluations

Profitability evaluations can be carried out in a static or dynamic process. The goal of a profitability analyses is to check and assess the investments which are being planned against the operative goals of the investor.

 

 

All profitability examinations have one thing in common, which is that they are based on forecasts for one’s own product as well as on the commercial framework.

 

Profitability evaluations are used to assess the commercial factors for projects. They are calculation processes, which pick the key figures out of the investments, costs and revenue. By comparing these key figures you can decide for or against certain projects or select the most commercially viable scenario.

 

 

The object of the evaluation can encompass an examination of alternative acquisition or financing methods, for example a comparison between own capital, outside capital or mixture of the two. The comparison between own financing and outside financing is a special field of examination.

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