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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

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Encyclopedia Articles

Discover the definition of financial terms related to profitability.

Capital: How it Works, Types, and Examples Thumbnail

Capital: How it Works, Types, and Examples

Silas Bamigbola

Net Profit Margin: What It Is, How to Calculate, Pros and Cons Thumbnail

Net Profit Margin: What It Is, How to Calculate, Pros and Cons

Silas Bamigbola

EBIT: Definition, Calculation, and Key Insights Thumbnail

EBIT: Definition, Calculation, and Key Insights

Silas Bamigbola

EBITDA Margin: What It Is and  How to Calculate Thumbnail

EBITDA Margin: What It Is and How to Calculate

Silas Bamigbola

Trailing 12 Months: What It Is, How to Calculate, and Examples Thumbnail

Trailing 12 Months: What It Is, How to Calculate, and Examples

Silas Bamigbola

Accounts payable turnover ratio: Definition, calculation, and examples Thumbnail

Accounts payable turnover ratio: Definition, calculation, and examples

Abi Bus

Cost-volume-profit analysis: Definition, How It Works, and Applications Thumbnail

Cost-volume-profit analysis: Definition, How It Works, and Applications

Abi Bus

Gross sales explained: How it works, examples, and limitations Thumbnail

Gross sales explained: How it works, examples, and limitations

Abi Bus

Solvency explained: How It Works, Types, and Examples Thumbnail

Solvency explained: How It Works, Types, and Examples

Abi Bus

Cost of revenue explained: How it works, types, and examples Thumbnail

Cost of revenue explained: How it works, types, and examples

Abi Bus

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About 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.