decline in profitability

USAGE SUMMARY

The phrase "decline in profitability" is correct and usable in written English.
It can be used when discussing a decrease in a company's financial performance or earnings over a specific period. Example: "The recent market trends have led to a significant decline in profitability for many businesses in the sector."

✓ Grammatically correct

News & Media

Science

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

25 human-written examples

Their first consequence will be a decline in profitability.

The Economist

While earnings improved, Intel said lower prices from Advanced Micro contributed to a decline in profitability.

The New York Times

But now, the decline in profitability of each transaction and each account is painfully apparent.

The New York Times

The lower cash compensation, according to the filing, stemmed from Disney's decline in profitability in the global economic downturn.

The New York Times

A second circumstance is a sudden, precipitous decline in profitability or asset value, as in the case of Morrison Knudsen.

Harvard Business Review

The reasons for reshaping WNBC are tied to the coming expansion in digital capacity for local broadcasters, as well as the sharp decline in profitability for local stations.

The New York Times - Arts

Human-verified similar examples from authoritative sources

Similar Expressions

35 human-written examples

Many of the world's largest and most profitable offshore oil and gas basins are reaching maturity and are declining in profitability.

Journal of Petroleum Science and Engineering

Declines in profitability have meant carmakers and dealers are scrambling to diversify their revenue sources.

The New York Times

Starting in the early 1990's, however, the strategy declined in profitability and then began posting frequent losses.

The New York Times

"The first half of 2008 saw the most difficult financial markets for several decades, marked by significant declines in profitability throughout much of our industry," HSBC's chairman, Stephen Green, said in a statement.

The New York Times

So far, they've been looking at the overall declines in profitability for companies in the Standard & Poor's 500 index – the headline figure – and ignoring the fact that if you stripped out the results for energy, profits have continued to grow.

The Guardian - Money

Expert writing Tips

Best practice

Use quantifiable data to support claims of a "decline in profitability". Include metrics like percentage decreases, dollar amounts, or comparisons to previous periods to provide concrete evidence.

Common error

Do not simply state there is a "decline in profitability" without providing context or data. Unsupported claims can weaken your argument and credibility. Always back up your statements with specific information and relevant metrics.

Linguistic Context

The phrase "decline in profitability" functions as a noun phrase often serving as the subject or object of a sentence. It describes a state or condition related to a reduction in financial gains. Ludwig confirms this usage through numerous examples in diverse contexts.

Expression frequency: Common

Frequent in

News & Media

40%

Formal & Business

30%

Science

20%

Less common in

Academia

5%

Encyclopedias

3%

Wiki

2%

Ludwig's WRAP-UP

In summary, "decline in profitability" is a common and grammatically sound phrase used to describe a reduction in a company's financial gains. As Ludwig AI indicates, it is widely accepted and used across various authoritative sources, primarily in the contexts of News & Media, Formal & Business, and Science. When using this phrase, it's best practice to provide specific details and quantifiable data to support your claims, while avoiding vague or unsupported statements. Related phrases include "decrease in profitability", "reduction in profitability", and "drop in profits", each with slight nuances in meaning. The phrase functions as a noun phrase and serves the purpose of reporting and analyzing economic trends. In conclusion, understanding the proper usage and context of "decline in profitability" is crucial for clear and effective communication in financial and business discussions.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

decrease in profitability

Replaces "decline" with "decrease", maintaining the same meaning.

reduction in profitability

Substitutes "decline" with "reduction", emphasizing the lessening of profits.

drop in profits

Uses simpler language to describe a decrease in profits.

fall in earnings

Focuses on the reduction in earnings instead of overall profitability.

profit margin erosion

Highlights the gradual decrease in profit margins.

economic downturn

Broadens the scope to describe a general economic decline affecting profitability.

decreased financial performance

Uses more formal language to describe a reduction in financial results.

slump in earnings

Suggests a sudden and significant decrease in earnings.

waning profitability

Implies a gradual fading or weakening of profitability.

shrinking profit margins

Emphasizes the compression or reduction of profit margins.

FAQs

What are some alternative ways to say "decline in profitability"?

You can use alternatives such as "decrease in profitability", "reduction in profitability", or "drop in profits" depending on the context.

What factors typically contribute to a "decline in profitability"?

Common factors include increased operating costs, decreased sales volume, heightened market competition, and adverse economic conditions. These elements can collectively reduce a company's earnings.

How can a company address a "decline in profitability"?

Strategies may involve cost-cutting measures, increasing sales and marketing efforts, improving operational efficiency, or diversifying product offerings. Addressing the root causes is essential for recovery.

Is "decline in profitability" the same as "decrease in earnings"?

While closely related, "decline in profitability" refers to a broader measure of financial health, considering factors beyond just earnings. "Decrease in earnings" focuses specifically on the reduction of net income.