Portfolio Analysis

Published by MBA Skool Team, Last Updated: May 23, 2020

What is Portfolio Analysis?

Portfolio Analysis is the process of reviewing or assessing the elements of the entire portfolio of securities or products in a business. The review is done for careful analysis of risk and return. Portfolio Analysis conducted at regular intervals helps the investor to make changes in the portfolio allocation and change them according to the changing market and different circumstances. The analysis also helps in proper resource/asset allocation to different elements in the portfolio.


Some examples of Portfolios:

• Unilever: teas, spreads, ice-cream

• Gillete:shaving products, batteries


The advantages of portfolio analysis for any company are:

• Evaluation of the firm’s business by the top management

• It helps to assess the company’s attractiveness

• Raises issues related to cash flow availability

• It helps to assess the competitive strength of the company with respect to market share, contribution margin, product fit etc.

• Communication is facilitated


This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 2000 business concepts from 6 categories.

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