Methodology / Glossary / Sensitivity Analysis

Sensitivity Analysis

A technique for testing how changes in two input variables simultaneously affect profitability. A sensitivity matrix shows the impact of varying, for example, sale prices and build costs across a range of scenarios.

Why it matters

Sensitivity analysis reveals which variables have the greatest impact on profit and how much margin of safety exists.

In Profivo

Available in the Sensitivity tab with customizable variable pairs and percentage ranges.

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