profitability

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Word: Profitability

Part of Speech: Noun

Definition: Profitability is the quality of being able to make a profit or gain. In simpler terms, it means that a business or investment is earning more money than it spends.

Usage Instructions:

• Use “profitability” when discussing business, finance, or investments.
• It often refers to how well a company is doing in terms of making money.

Example:

• "The profitability of the new restaurant has increased since they started offering delivery services."

Advanced Usage:

• In a business context, you might hear phrases like "high profitability" or "low profitability" to describe how successful a company is at generating profit.
• Analysts may assess a company’s profitability by looking at its profit margins, return on investment (ROI), or earnings before interest and taxes (EBIT).

Word Variants:

• Profitable (adjective): Able to make a profit.
  • Example: "The investment was very profitable."
• Profit (noun): The money gained after costs are taken away.
  • Example: "The company reported a profit of $1 million last year."
• Profits (noun, plural): The earnings from a business activity.
  • Example: "The profits from the event will go to charity."

Different Meanings:

• In a broader sense, profitability can also refer to any situation where something yields benefits, not just in financial terms. For example, a project can be profitable if it produces valuable results or outcomes.

Synonyms:

• Profitability can be synonymous with:
  • Viability
  • Gainfulness
  • Lucrativeness

Idioms and Phrasal Verbs:

• While “profitability” does not have specific idioms or phrasal verbs directly associated with it, you might hear phrases like:
  • "In the black": This means that a business is making a profit (opposite of "in the red," which means losing money).
  • "Break even": This refers to a point where a business’s income matches its expenses, meaning it is not making a profit but also not losing money.

Summary:

Profitability is an important concept in business and finance, indicating how effectively a company or investment can generate profit.

Academic

Noun

1. the quality of affording gain or benefit or profit

Synonyms

• profitableness
• gainfulness
• lucrativeness