1. What does profitability analysis mean to you? Why do companies analyze profits? What is Analysis? Do you believe that it is necessary to analyze profits? Answer these questions and provide an article link that supports your answers. Discuss and expand the conversation around each others’ articles. Cite outside material properly.
2. How can two companies with identical P & L statements (identical profitability) at year-end provide different annual returns to each of their investors? Which company is the riskier investment? Discuss some different scenarios that result in different levels of risk in each of the cases. Cite outside articles/material. For more information on Financial Statement Analysis check on this: https://en.wikipedia.org/wiki/Financial_statement_analysis
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