Analyzing Profitability Efficiency and Correlations in Financial Data

Analyzing Profitability Efficiency and Correlations in Financial Data

We discuss an indicator called data and follow-up analysis, where we use variables like total revenue, total assets, and capital as inputs in a linear programming function to represent the output based on available data. We exclude components with losses and identify the ones that achieve full profitability efficiency at 100%, representing the efficiency frontier. We also calculate the correlation between profitability and revenue, assets, and capital, finding the strongest correlation between profit and revenue, followed by profit and assets, and the weakest correlation between profit and capital.

https://youtube.com/shorts/Xp5xxDUk8Ng?si=bulM25HaY6phuxH9

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