Profitability is the ratio between a business’s income and its expenses. A business determines its income by calculating the money the business generates through its operations and activities. A business determines its expenses by calculating the number of resources (money, time, and inventory) consumed during the course of its operations.

Profitability is the ability of a company or business to generate revenue over and above its expenses. It is usually measured using ratios like gross profit margin, net profit margin EBITDA, etc. These ratios help analysts, shareholders, and stakeholders to analyze and measure the company's ability to generate revenue.

Profitability is a measure of how much money a company makes relative to its expenses. That means it is a measure of how efficiently a company is using its resources to generate revenue. It is usually expressed as a percentage and calculated by dividing the company’s net income by its total revenue.

Profitability is measure of a company’s ability to generate income relative to its expenses. When a business’s revenue growth outpaces its spending and operating costs, it is said to be profitable. Companies that are not making enough money are considered unprofitable and must make adjustments in order to become profitable again.

A company’s Profitability is how well it generates a profit – its ability to make a profit. When your company has high profitability, it makes a good profit. If it has low profitability, it struggles to make a profit. If your company is making a loss, you may need to reorganize it to improve its profitability.