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Now, with the development of economy, more and more different kinds of company come out, and competition of among enterprises becomes stronger. Therefore, that brings us to a critical problem facing anyone how can we know about profitability of companies. As a manager, it is urgent to study the profitability of company, and find out the gap with other companies, so as to improve the management system, and develop the competitiveness of enterprises. Moreover, as an investor, it is significant to research the profitability of different enterprises. It can help them choose the correct way for investment, and reduce risks. Generally speaking, under the slow economic growth of circumstances investors mainly focus on statement of assets and liabilities, because they preferentially consider whether enterprises can keep going or not. On the other way, in emerging market, they especially concentrate their attention on profit statement of enterprise that is profitability, because in that situation, they care about whether can find higher value in return in short time.
Consequently, it is particularly important to analyze profitability of companies.
The previous works in this area mostly analyze profitability by financial data, afterwards, some article on profitability come out gradually. Robyn Lawernce and John Kercsmar (1999) analyzed profitability of enterprise by financial statement; they created a basic frame for financial frame, which can be investors' reference. However, they did not analyze from non-financial factors. Mike Simonetto, Chuck Davenport, Robert Olsen (2004) focus on improving profitability from price execution. As one of the most important revenue and profitability improvement, useful price execution has been known. This article analyze profitability by product and customer contribution analysis, price band analysis, it did not involve financial analysis. Colin Beasty (2007) indicated that in order to improve profitability of companies, they have to develop...