1. Use relevant indicators of profitability to reflect and measure business performance. The fundamental task of enterprise managers is to make enterprises earn more profits through their own efforts. The various income data reflect the profitability of the enterprise, and also show the size of the manager's work performance. Comparing the achieved profitability index with the standard, base period, average level of the same industry, and other companies, you can measure the performance of managers. <br>2. Through profitability analysis to find out the problems in operation and management. Profitability is the specific manifestation of business activities in all aspects of an enterprise, and the performance of an enterprise's operation will be manifested through profitability. Through in-depth analysis of profitability, we can find major problems in operation and management, and then take measures to solve the problems and improve the level of corporate profitability;
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