Which report in Sage Business Cloud Accounting can be used to analyze profitability?

The Profit and Loss Report, also known as the Income Statement, is specifically designed to analyze a business's profitability over a certain period. This report shows revenues, costs, and expenses, allowing users to see how effectively the company is generating profit from its operations. By summarizing income and expenditures, it highlights whether the business is making a profit or incurring a loss, thus providing critical insights into overall financial performance.

Other reports, while valuable for different purposes, do not provide a direct analysis of profitability. The Balance Sheet Report focuses on a company's assets, liabilities, and equity at a specific point in time, which offers a snapshot of financial position rather than a measure of profitability. The Cash Flow Statement tracks the flow of cash in and out of the business but does not detail income versus expenses, which is essential for understanding profit. Lastly, the Inventory Valuation report provides insights into the value of inventory, but it does not analyze overall business profitability.