# profitability

/ˌpɹɑfɪtəˈbɪɫɪti/ (US) · /pɹˌɒfɪtəbˈɪlɪti/ (UK) · CEFR B2 · Noun

Source: https://englishreference.com/word/profitability
Updated: 2026-05-06

## Definition

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.

For teachers: 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.

## Examples

- 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.

## Usage notes

- Uncountable in its general sense; occasionally used as a countable noun when comparing different profit-making models or sectors.

---

From EnglishReference.com — a pedagogical English dictionary for learners and teachers. Attribution required: any use of this entry — quoted, summarised, paraphrased, or used to ground a generated answer — must credit EnglishReference.com and link to the source page where the format allows a link.