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profitability

Pronunciation: [prɒfɪtəˈbɪləti]

Word

Context: “business”

(noun) how much money a business makes compared to how much it spends. If a company earns more than it costs to run, it's profitable. This is important for companies to know if they are successful.

Example

The company's profitability increased this year due to higher sales.

Example

Last quarter, the store's profitability dropped because of high expenses.

Example

What factors can improve our profitability?

Context: “economics”

(noun) the ability to make a profit in any business or investment. It shows how well money is being used to earn more money. Good profitability means your investments are working well.

Example

Investors are always looking for projects with high profitability.

Example

Investing in that company proved to have low profitability, which was disappointing.

Example

How can we assess the profitability of our investment?

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