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when a companys profit goes up or down from one period to the next we can use cause of change analysis to understand why that happened for example home depots net income increased docHubly from 2017 to 2018. so if we take a look their net income in 2017 was 8.63 billion dollars and it went up in 2018 to over 11 billion dollars so there was an increase of two and a half billion dollars of profit from one year to the next and the question is why did they sell more product did they bring down one of their expenses what happened so were going to use cause of change analysis im going to walk you through this theres a lot of moving parts but i think youll find it very helpful so were going to start with our base year here fiscal year 2017 and then in each column here in each column were going to make an additional change and see what was the effect for example of the increase in weekly sales on the companys profit so fiscal year 2017 they had a 100.904 uh billion dollars in pro
