Industrial Analysis On Profitability And Efficiency
Anubhav Dhoundiyal
Analysis On Profitability
The charts depicts that the revenue is minimum in the sector of information technology but the profitability is maximum which shows that the IT business has the most efficiency amongst other businesses . The median operating margin , the median net margin and proportion of profitable enterprises shows Information technology is a clear winner in all the segments , whereas despite having the maximum revenue the consumer discretionary has the least positive profit . It is to be also noted that the energy sector has a negative median net margin.
Industry Trend on Efficiency
The line graph shows that the consumer has the maximum no of inventory days when compared with others it means that it has the maximum number of days which held inventory . after that coming on to the cash conversion cycle it clearly shows that the information technology has the negative cycle which states that it gets cash first then have to pay to its suppliers. Furthermore, the median asset turnover has declined for most of the countries over the years except for the energy sector, in this consumer staples has the maximum median asset turnover. At last, the median return on asset is maximum for information technology and least for energy sector which is negative.