formal 3K

Profitability

UK //ˌprɒfɪtəˈbɪləti// US //ˌprɑːfɪtəˈbɪləti// Pronunciation

Definition

The quality or state of being profitable.

Listen to definition

In simple words: The ability to make a profit.

Examples

• The company's profitability has improved due to cost-cutting measures.
• Investors are concerned about the profitability of the new product line.
• Measuring profitability is essential for any business.
• The profitability ratio indicated a strong return on investment.
• They are analyzing the profitability of their operations this quarter.

Usage notes

Used mainly in business and finance contexts. Not commonly used in casual conversations.

Grammar pattern

standalone noun

Memory hint

Think 'profit' + 'ability' - the ability to earn money.

Collocations

• increase profitability
• measure profitability
• financial profitability
• maximize profitability
• evaluate profitability

Synonyms

• profit
• gainfulness
• financial success
• lucrativeness
• yield

Common mistakes

• Confused with 'profit' which is the actual money made.
• Using it in casual speech, where simpler terms would suffice.
• Incorrectly using it to refer to overall success without specific financial context.