Profitability

1.

A relative measure of profit, designed to facilitate comparisons between different businesses and between different time periods.

Often expressed in percentage terms, for example, Return on capital employed.

2.

Profitability also means the general condition of earning profits, usually consistently, rather than being loss-making.

For example, a return to profitability following an earlier period of losses.

See also

• Drag
• EBITA
• EBITDA
• Gross profit margin
• Loss
• Net profit margin
• Operating profit margin
• Profit
• Ratio analysis
• Return on capital employed (ROCE)
• Underlying