What explains the volatile net profit in 2023-2024?

The volatile net profit in 2023-2024 can be attributed to several factors:

1. **Economic Conditions**: The state of the economy significantly impacts profit margins. During periods of economic growth, demand for most products increases, leading to higher profits. Conversely, during economic downturns, demand decreases, resulting in lower profits.
2. **Competition**: The degree of competition a firm faces affects its profit margins. In highly competitive markets, firms may need to lower prices to remain competitive, which can reduce profit margins. Additionally, the threat of new entrants into the market can keep prices low and affect profitability.
3. **Advertising and Marketing**: The effectiveness of a company's advertising and marketing strategy can influence profit margins. High-quality advertising can increase brand loyalty and demand, leading to higher profits. Conversely, ineffective marketing can result in lower sales and profits.
4. **Cost Management**: Poor cost management can lead to increased expenses, which directly impact net profit. Inaccurate cost data and lack of profitability information can result in poor decision-making, further diminishing profits.
5. **Market Trends and Product Life Cycles**: Products that are fashionable or at the peak of their life cycle tend to have higher demand and profits. As products move through their life cycle, demand and profits often decline. Companies that fail to innovate or adapt to changing market trends may see profits decrease.
6. **Geopolitical Factors**: Events such as trade wars, tariffs, and geopolitical tensions can affect supply chains, increase costs, and impact profitability.
7. **Innovation and Technological Advancements**: Companies that innovate and adopt new technologies can gain a competitive edge, leading to higher profits. Conversely, those that lag in innovation may see profits stagnate or decline.

These factors, among others, contribute to the volatility of net profit margins, especially over short periods of time (2023-2024).