profitability
degree to which something makes profit
How much money a business or activity makes compared with what it spends.
the profitability of [a business/activity/investment]
- The company has focused on cutting costs to improve its profitability.
- Investors are concerned about the long-term profitability of the project.
- After several years of losses, the airline finally returned to profitability.
- We need to analyze the profitability of each product line before expanding.
- Profitability in the first quarter exceeded analysts’ expectations.
- The new shop reached profitability in its second year.
- We must reduce our costs to increase profitability.
- The manager checks the profitability of each service every month.
- High rent is hurting the restaurant’s profitability.
- Good marketing can help a small business improve its profitability.
- Base: profitability
- Plural: profitabilities, profitability
achieve profitability
1start being profitable
To reach the point where a business or activity begins to make a profit instead of a loss.
- Most startups take several years to achieve profitability.
- The streaming service has not yet achieved profitability in any of its new markets.
improve profitability
1increase how profitable something is
To make a business or activity bring in more profit compared to its costs.
- Management introduced new software to improve profitability across all departments.
- They are closing unprofitable stores to improve profitability in the core markets.
increase profitability
1make profitability go up
To make the profit level of a company or activity go up.
- The CEO outlined several strategies to increase profitability over the next three years.
- Automation has helped the factory increase profitability without hiring more staff.
maintain profitability
1keep an existing level of profit
To keep making the same level of profit or more, without letting it fall.
- The company must maintain profitability while investing heavily in research and development.
- It’s difficult for airlines to maintain profitability when fuel prices rise quickly.
path to profitability
1planned way to become profitable
A plan or set of actions that should help a company start making a good profit in the future.
- Investors want to see a clear path to profitability before funding the startup.
- The new pricing model is a key part of our path to profitability.
profitability index
1investment metric comparing value to cost
A financial number that shows how much value an investment is expected to create compared with how much it costs.
- The project has a profitability index greater than 1, so it should be accepted.
- Analysts used the profitability index to compare several competing investment opportunities.
profitability ratio
1ratio measuring company profit performance
A financial measure that compares how much profit a company makes to things like its sales or total money invested in it.
- Return on equity is a commonly used profitability ratio.
- Banks closely track several profitability ratios to measure their performance.
reach profitability
1arrive at profit-making stage
To get to the stage where a business or activity makes more money than it spends.
- Analysts expect the company to reach profitability next year.
- The app reached profitability much faster than investors had predicted.
return to profitability
1become profitable again after losses
To start making a profit again after a time of losing money.
- The car maker hopes to return to profitability by cutting production costs.
- Thanks to strong holiday sales, the retailer returned to profitability this quarter.