It does not need to be backed by data to understand that Revenue (Sales) results in profit (Earning before Interest and Taxes). More sales, more profit.
However it is harmless to tes the observation on real data.
Our servers already have the financial data of almost all the companies. Let's see if higher sales do indeed result in higher profits.
The trendline drawn by the resulting dots suggests that there is a positive correlation between sales and profits.
This analysis shown another interesting fact. Top performers and top under-performers. Top performers are on the top left corner such as Oil and Gas Development Corporation Limited (OGDCL) with highest profits and top under-performers are on the bottom right corner such as Pakistan State Oil (PSO).
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