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The phrase "based on profitability" is correct and usable in written English.
You could use it when you want to explain why a decision or action was taken. For example, "We decided to invest in a new technology based on profitability."
Exact(7)
Inside the keiretsu, companies are not forced to compete for financing and have little incentive to make decisions based on profitability.
Which partner is more able and willing to invest in the alliance, based on profitability, cash on hand, and the strategic importance of the business?
(The major American automakers contribute a roughly equivalent percentage of workers' income to their retirement funds). Nissan distributes annual "thank you" bonuses to workers, worth $4,000 in each of the last two years, though the bonuses are not based on profitability, as is the practice with American automakers.
The projects were ranked based on profitability data (Table 5) using the procedure described above.
It's all based on profitability multiples, which were declining because web gaming was shifting to mobile.
We would rather see managements compensated on a return on invested capital metric of ROE metric something based on profitability as opposed to growth.
Similar(53)
The views of respondents based on the profitability of SMEs relating to their outsourcing of one or more activities are shown in Table 5.
Subjects playing the roles of managers were instructed to maximize their profits and were told that their compensation would be partly based on their profitability.
In any case, Peoples executives received bonuses based on company profitability at the time.
Mr. Janicke, Mr. Kearns's attorney, argued that Mr. Kearns should receive a substantial percentage of the selling price that Ford charged dealers for the wiper, a percentage based on historic profitability.
Furthermore, investors will make decisions based on their profitability, which depends among other things on the possibility of importing (exporting) from (to) neighboring countries, and will not necessarily coincide with the aims of the regulators or the consumers.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com