Linking just in time to financial statements profitability analysis based on duality properties

The purpose of this paper is to analyze the impact of Just-in-time (JIT) strategy in profitability analysis by introducing the dual concept of monetary unit and a value transformation in financial statements items. A rational and analytical method was used; the analysis is based on a transaction concept, which applies to JIT and figures in financial statements, a monetary unit value change in financial statements and a computation of financial ratios/measures that include value transformation. Results show that value-creation computation in JIT methodology includes a Dirac function, a value-creation function and a kernel for the time of the offer-demand match. Based on the dual concept of monetary units a value transformation for the monetary units involved in profitability computation is included; it encompasses another kernel to find the new values of monetary units. The transformation applies to the computation of measures and ratios such as gross profit, operating profit, income, return on assets, return on equity, and return on investment; consequently, the computation of this measures/ratios changes when introducing the dual concept of monetary units.