I have been watching a case video on the chewing gum manufacturer (https://www.youtube.com/watch?v=DamZmMbp5eM) and tried to completely follow all the steps and explanations. Right in the beginning the interviewer says that profits have gone up, while profitability declined. I don't understand this point. In my understanding profitability = profit/revenue
This means, however, that when profits go up profitability will also go up. The easiest explanation I can think of is that the interviewer wanted to say that revenues have increased while profitability decreased.
I would highly appreciate any clarification on this.
Thanks a lot