In profitability analysis,absolute numbers are more meaningful than relative numbers because the analyst needs to know if one firm earned more dollars than the other.

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Relative numbers, such as ratios and percentages, are more meaningful in profitability analysis because they allow for comparison between companies of different sizes by providing a proportional basis of measurement. Absolute numbers don't account for the scale of the business.

In Profitability Analysis,absolute Numbers Are More Meaningful Than Relative Numbers