Profitability
Profitability is a measure of a company's ability to generate profits. This can be expressed in terms of the company's gross margins, net income, or return on investment. Continue Reading Below
Encyclopedia Articles
Discover the definition of financial terms related to profitability.

Return on Capital Employed (ROCE): What It Is, How to Calculate
Silas Bamigbola

Accounting Ratios: Understanding, Application and Examples
Silas Bamigbola

What is Negative Working Capital?
Benjamin Locke

Revenue: Definition, Types, and How It Differs from Profit
Andrew Latham

What Is an Income Statement? Components and How to Read One
Andrew Latham

What Is Gross Profit? Formula, Margin, and Why It Matters
Andrew Latham

Fixed Costs: Definition, Examples, and How They Affect Break-Even
Andrew Latham

Return on Invested Capital (ROIC): Formula, Benchmarks & Analysis
Andrew Latham

What Is Return on Assets (ROA)? Formula, Benchmarks, and How It Differs from ROE
Andrew Latham

What Is the Debt-to-Equity Ratio? Formula, Benchmarks, and How to Use It
Andrew Latham