Decreased profitability

USAGE SUMMARY

The phrase "Decreased profitability" is correct and usable in written English.
It can be used in financial or business contexts to describe a reduction in profit margins or earnings. Example: "The company's recent investments have led to decreased profitability, prompting a review of its financial strategies."

✓ Grammatically correct

Formal & Business

News & Media

Science

Human-verified examples from authoritative sources

Exact Expressions

8 human-written examples

Decreased profitability could be a good time to introduce new products if demand for your current product or service is put on hold.

Forbes

We also found that a decision that management believed would increase revenues changing the customer class mix actually decreased profitability substantially.

Cornell University

Douglas C. Manditch, president and chief executive of the company, said that the decreased profitability was the result of several factors, including the low interest rate environment and the overall economy.

The New York Times

Reduced patent life and overall decreased profitability of newly discovered drugs are also forcing the pharmaceutical industry to shorten the drug development time with maximum throughput.

Drug Discovery Today

It was critical to maintain a correct balance for the spare-parts inventories, since unavailability led to loss of revenues, decreased profitability, customer dissatisfaction and also gave rise to the fake products industry.

Harvard Business Review

Analysts, while acknowledging the Federal Reserve's support for U.S. broker-dealers boosts confidence in capital markets, said negative outlooks for independent securities firms are appropriate since the potential for decreased profitability is still substantial.

Forbes

Human-verified similar examples from authoritative sources

Similar Expressions

52 human-written examples

Decreasing profitability and increased competition in the late 20th century led to the closure of the Lota coal mine in 1997.

Britannica

The company said that it was researching the impact of its products on "well-being" and noted that the CEO, Mark Zuckerberg, indicated a willingness to decrease profitability to address issues such as foreign interference in elections.

The Guardian - Tech

Resolution 7 requests the Chevron board adopt a dividend policy increasing the amount authorised for capital distribution to shareholders in light of the growing potential for "stranded assets" and decreasing profitability associated with capital expenditures on high cost, unconventional projects.

Forbes

Corporate directors need not check their morals at the boardroom door and decide all questions unidimensionally, with regard solely to whether a particular course of action increases or decreases profitability.

Huffington Post

The most frequently mentioned constraints included rapidly decreasing profitability of the low income country ARV market, difficult market entry, and limited access to reliable forecasting information.

Globalization and Health

Expert writing Tips

Best practice

When discussing "decreased profitability", provide specific context, such as the period affected (e.g., "decreased profitability in Q2") or the factors contributing to it (e.g., "decreased profitability due to rising costs").

Common error

Avoid attributing "decreased profitability" to vague reasons like "market conditions" without providing detailed analysis. Instead, specify which market changes (e.g., increased competition, shifting consumer preferences) are impacting profitability.

Linguistic Context

The phrase "decreased profitability" functions primarily as a noun phrase, often serving as the subject or object of a sentence. As seen in Ludwig, it describes the state or condition of having reduced profits. This is consistent with examples where it's used to explain business outcomes.

Expression frequency: Uncommon

Frequent in

News & Media

24%

Science

38%

Formal & Business

14%

Less common in

Academia

10%

Encyclopedias

4%

Wiki

10%

Ludwig's WRAP-UP

The phrase "decreased profitability" is a grammatically correct noun phrase used to describe a reduction in profits. Ludwig AI affirms its validity and usability in various contexts. While not extremely common, it appears across different domains, including news, science, and business. The phrase is typically used in a formal and professional register to inform or explain negative financial outcomes. When using this phrase, it is important to provide specific context to enhance clarity. Alternative phrases such as "reduced profit margins" or "declining profits" can be used to convey similar meanings. Given its usage patterns and strong presence in authoritative sources, "decreased profitability" is a reliable and precise term for discussing financial performance.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

Profitability decline

Highlights a reduction in profitability levels.

Reduced profit margins

Focuses on the narrowing of the profit margin rather than the overall profitability.

Lowered earnings

Emphasizes the decrease in the amount of money earned.

Declining profits

Highlights the downward trend in profits over time.

Shrinking profitability

Implies a gradual reduction in profitability.

Drop in earnings

Simply conveys that profits are lowered.

Diminished returns

Suggests that the returns on investment have lessened.

Erosion of profits

Conveys a sense of profits being gradually worn away.

Profit downturn

Refers to a negative turn or decline in profits.

Weaker profitability

Indicates that the level of profitability is less robust.

FAQs

How can I use "Decreased profitability" in a sentence?

You can use "Decreased profitability" to describe situations where a business or venture experiences a reduction in its profit margins or earnings. For example: "The company experienced "decreased profitability" due to rising operational costs."

What are some alternatives to saying "Decreased profitability"?

Alternatives include "reduced profit margins", "profit downturn", or "declining profits", depending on the specific context.

Is it correct to say "Decrease in profitability" instead of "Decreased profitability"?

Both "Decrease in profitability" and "Decreased profitability" are grammatically correct, but "Decreased profitability" functions as a noun phrase describing the state of reduced profits, while "Decrease in profitability" refers to the act of profits decreasing.

What factors typically contribute to "Decreased profitability"?

Common factors include increased operating costs, greater competition, reduced sales volume, and changes in market conditions. The specific causes can vary depending on the industry and business model.