profitability

profitability — noun

1. a measure of how much money a business activity earns compared to what it costs,

1.nounB2
Definition

a measure of how much money a business activity earns compared to what it costs, or the likelihood that it will earn more than it costs

Example

The board questioned the profitability of opening a new factory in Minnesota.

profitability of + gerund phrase

Femi improved the company's profitability by cutting unnecessary costs.

Common collocations
  • high profitability
  • low profitability
  • long-term profitability
  • overall profitability
  • strong profitability
  • profitability ratio
  • profitability analysis
  • improve profitability
  • boost profitability
  • assess profitability
  • measure profitability
  • affect profitability
Synonyms
  • profit

    refers to the actual money earned, not the ability to earn it; more concrete and countable

  • yield

    focuses on financial return from an investment; narrower and more technical in finance contexts

  • returns

    emphasises the financial gain relative to the amount invested; often used in plural

Antonyms
  • unprofitability

    direct opposite; the state of not earning more than it costs

  • loss

    the actual negative financial result rather than a measure of ability

Grammar Patterns

the profitability of [something]

[possessive] profitability

[adjective] profitability

Usage Note

Frequently paired with premodifying adjectives such as 'high', 'low', 'strong', 'weak', 'long-term', or 'overall'. The noun is uncountable and rarely used with the indefinite article 'a'.

Common Mistakes

The new policy has high profitability rate.
The new policy has a high profitability rate.
'rate' is a countable noun and needs an article, even though 'profitability' itself is uncountable.
We need to increase the profitability of the store more profitable.
We need to make the store more profitable.
'profitability' is a noun; use the adjective 'profitable' after 'more'.

Word family

  • profit
    nounA2
  • profit
    verbB1
  • profitable
    adjectiveB2
  • profitably
    adverbC1
  • unprofitable
    adjectiveC1
  • profiteer
    nounC2
  • profiteering
    nounC2

Synonym discussion

Sense: noun/1

All four words relate to financial gain, but they differ in what they measure. Profitability is an abstract, uncountable noun describing the ability or likelihood of earning more than something costs — it is a quality, not a sum. Profit is the actual amount of money left after costs are subtracted; it is countable and concrete ('a profit of $50,000'). Yield is a technical term for the income generated by an investment, usually expressed as a percentage. Returns is broader and often used in the plural to describe the total gain or loss from an investment over time. For example: 'The company's profitability improved, but total profit fell due to higher taxes.' 'The bond offers a yield of 3%.' 'Investors expect strong returns over five years.'

profitability ↗profit ↗yield ↗returns

Common collocations

Nouns

Phrases

  • level of profitability
  • decline in profitability
  • profitability of a business

Prepositions

Etymology

LatinFrenchEnglish

From 'profitable' (adjective) + '-ity' (a suffix that forms nouns from adjectives, meaning 'the quality or state of'). 'Profitable' comes from 'profit' (noun) + '-able' (suffix meaning 'capable of'). 'Profit' entered English from Old French 'profit', which came from Latin 'profectus' meaning 'advance, progress, increase' — the idea being money that moves forward or grows.