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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.

Normalized Earnings: Definition, Examples, and Strategic Insights Thumbnail

Normalized Earnings: Definition, Examples, and Strategic Insights

Silas Bamigbola

Navigating Budgetary Slack: Definition, Impact, and Prevention Strategies Thumbnail

Navigating Budgetary Slack: Definition, Impact, and Prevention Strategies

Alessandra Nicole

Understanding Restructuring Charges: Definition, Examples, and Pros & Cons Thumbnail

Understanding Restructuring Charges: Definition, Examples, and Pros & Cons

Abi Bus

Exercise Price: Meaning and Implications in Stock Purchase Thumbnail

Exercise Price: Meaning and Implications in Stock Purchase

SuperMoney Team

Pro-Forma Earnings: Definition, Application, and Real-world Scenarios Thumbnail

Pro-Forma Earnings: Definition, Application, and Real-world Scenarios

SuperMoney Team

Segment Margin: What It Is, How to Calculate, and Real-World Examples Thumbnail

Segment Margin: What It Is, How to Calculate, and Real-World Examples

Alessandra Nicole

Analyzing Irrelevant Costs: Definition, Applications, and Case Studies Thumbnail

Analyzing Irrelevant Costs: Definition, Applications, and Case Studies

Alessandra Nicole

The Role of Captive Finance Companies: Understanding, Benefits, and Risks Thumbnail

The Role of Captive Finance Companies: Understanding, Benefits, and Risks

Abi Bus

Idle Time in Finance: What It Is, How to Mitigate, and Real-world Examples Thumbnail

Idle Time in Finance: What It Is, How to Mitigate, and Real-world Examples

Alessandra Nicole

Marginal Profit: What It Is and Practical Applications Thumbnail

Marginal Profit: What It Is and Practical Applications

Silas Bamigbola

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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.