profitability
n.the ability of a business to make more money than it spends. It shows how successful a company is at turning its work into profit.
n.the degree to which a business or activity yields financial gain after all expenses are deducted. Often used as a metric to evaluate the efficiency and long-term viability of an enterprise.
“The company is focusing on long-term profitability rather than quick sales.”
“Rising energy costs have significantly impacted the profitability of local manufacturing firms this quarter.”
“While the startup achieved impressive user growth in its first year, investors remain concerned about its path to profitability given the high cost of customer acquisition.”
Uncountable in its general sense; occasionally used as a countable noun when comparing different profit-making models or sectors.
“Research has also found that companies with more ethnic and cultural diversity on their executive teams are more likely to outperform on profitability.”
“However, by giving bosses complete control over such decisions, we are in danger of affirming the importance of profitability over well-being and ignoring the needs of working parents.”
From profitable + -ity.
Etymology adapted from Wiktionary, available under CC BY-SA 4.0.