PROFIT

Profit Analysis

Profit Analysis

The purpose of this research was to examine the claim that: Financial reporting of profitability and liquidity as indicators of performance in the UK construction industry. It is evident that in order to survive the often delayed timescales, construction businesses require strong liquidity for their projects. Furthermore, the study has revealed that liquidity has a direct impact on a company's profitability. This could be a result of borrowed money in order to finance working capital needs.

Table 1: Results of the base scenario; average of 100 replications (standard deviation in parentheses)

Known prices

Shadow prices

Estimated industry profit inefficiency

% of true industry ...