Patent ID: 8185432

Claim:
A computer-implemented method for determining future profitability of an entity, comprising: receiving, by one or more data processors, input data including present values for a plurality of profitability components; generating, by the one or more data processors, a present profitability model for an entity using the input data and an activity-based costing model; identifying, by the one or more data processors, a profitability driver, wherein the profitability driver is selected from the plurality of profitability components; forecasting, using the one or more data processors, an expected future value for the profitability driver; inputting, by the one or more data processors, the expected future value for the profitability driver into the present profitability model; inputting, by the one or more data processors, present values for remaining profitability components into the present profitability model, wherein the remaining profitability components were not selected as the profitability driver; and generating, by the one or more data processors, a future profitability forecast for the entity by applying the expected future value for the profitability driver and the present values for the remaining profitability components to the present profitability model.