profitability

Thân thiện

A company's profitability is shown by a rising green arrow on a chart.

Definition

Noun: The quality or state of yielding financial gain or benefit; the degree to which an activity or enterprise is profitable.

Usage

"Profitability" is a noun used to describe the financial performance and health of a business, project, or investment. It indicates its capacity to generate profit relative to its costs, revenue, or capital employed. It is a key metric in business and economics.

Examples

• The company's primary goal this quarter is to improve its profitability.
• Analysts are concerned about the long-term profitability of the new product line.
• High profitability often attracts more investors to a business.

Advanced Usage

• "Return on Investment (ROI)": A specific measure of profitability calculated as (Net Profit / Cost of Investment) x 100. It is a core metric for assessing profitability.
  • The project's high ROI confirmed its strong profitability.
• "Profitability Ratio": A class of financial metrics, such as net profit margin or gross profit margin, used to assess a company's ability to generate earnings.
  • The declining profitability ratios signaled trouble for the firm.

Variants and Related Words

• Profitable (adjective): Yielding profit or financial gain.
  • The venture proved to be highly profitable.
• Profit (noun): A financial gain, especially the difference between the amount earned and the amount spent.
  • The company reported a record profit this year.

Synonyms

• Profitableness: The quality of being profitable.
• Gainfulness: The state of producing gain or profit.
• Lucrativeness: The quality of producing a great deal of profit.

Antonyms

• Unprofitability: The quality of not yielding profit or gain.
• Loss: The state or fact of losing money.

Học thuật

Noun

1. the quality of affording gain or benefit or profit

Từ đồng nghĩa

• profitableness
• gainfulness
• lucrativeness