decrease in profitability

USAGE SUMMARY

"decrease in profitability" is a correct and usable phrase in written English.
You can use it to refer to a decline in a company's profits over a certain period of time. For example: Last quarter, the company experienced a steep decrease in profitability due to increased overhead expenses.

✓ Grammatically correct

Science

News & Media

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

10 human-written examples

One study found that Norwegian firms declined in value, while the other found a decrease in profitability.

The New York Times

"This is a direct result of the decrease in profitability," he said, "and one has to wonder how long the company can sustain this".

The New York Times

There is decrease in profitability, efficiency, liquidity, and leverage ratio(s) in most of the banks.

Journal of Global Entrepreneurship Research

Results are matched with the findings of Kemal ([2011]) and Sufian ([2004]), they did find decrease in profitability of banks after M&A.

Journal of Global Entrepreneurship Research

Although the mandate does not require firms to spend on CSR, we find that mandatory CSR reporting firms experience a decrease in profitability subsequent to the mandate.

Journal of Accounting and Economics

In addition to the loss of energy and the consequent decrease in profitability the ESP system, when operated under such conditions, soon develops mechanical problems that can lead to a complete system failure.

Journal of Petroleum Exploration and Production Technology

Human-verified similar examples from authoritative sources

Similar Expressions

49 human-written examples

The seafood industry is at a crossroads: while capture fisheries are stagnating in volume and decreasing in profitability, they are also falling short of world demand, as the annual consumption of seafood has been rising, doubling over the last three decades.

Encyclopedia of Ecology

That is, when cost-volume-profit model parameters deteriorate by one percent, the higher the degree of operating leverage, the higher is decrease in profit, and the higher the profitability, the smaller is decrease in profit.

Agricultural and Food Economics

Literature in strategic management identifies managerial hubris as a major cause of adverse firm performance, especially in explaining the failure of major strategic moves, such as mergers and acquisitions, or decreases in firm profitability (Roll 1986; Jiang et al. 2011).

Agricultural and Food Economics

Simulated extensification and abandonment in the Mediterranean region is driven by future decreases in the relative profitability of the agricultural sector in southern Europe, owing to decreased productivity as a consequence of increased heat and drought stress and reduced irrigation water availability.

Agricultural Systems

"It's been an enormous factor" in profitability, Ms. Quinn said.

The New York Times

Expert writing Tips

Best practice

When discussing financial performance, quantify the "decrease in profitability" with specific numbers or percentages to provide a clearer picture of the situation.

Common error

Don't just state there is a "decrease in profitability". Explain the factors contributing to the decrease, such as increased costs, reduced sales, or market changes.

Linguistic Context

The phrase "decrease in profitability" functions as a noun phrase, typically used as a subject, object, or complement in a sentence. It refers to a reduction or decline in the ability to generate profit. Ludwig confirms that this is a standard way to describe a company's finances.

Expression frequency: Common

Frequent in

Science

30%

News & Media

30%

Formal & Business

20%

Less common in

Wiki

10%

Encyclopedias

0%

Reference

0%

Ludwig's WRAP-UP

The phrase "decrease in profitability" is a grammatically sound and commonly used term to describe a decline in a company's earnings. Ludwig confirms its accuracy. It appears frequently in business, science, and news media, reflecting its relevance in these fields. Related phrases include "decline in profitability" and "reduction in profitability". When using this phrase, provide specific details about contributing factors and quantify the decrease to enhance clarity. Be mindful of the formal register and tailor your language to the audience and context.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

decline in profitability

Replaces "decrease" with "decline", a synonym indicating a downward trend.

reduction in profitability

Uses "reduction" instead of "decrease", emphasizing the act of lessening profits.

erosion of profitability

Implies a gradual and detrimental decline in profits.

drop in earnings

Focuses on the reduced earnings, a direct consequence of decreased profitability.

profit margin decline

Specifically highlights the decrease in the profit margin.

fall in revenue

Indicates a reduction in income, potentially leading to decreased profitability.

slide in financial performance

Refers to a general downturn in financial results, including profitability.

economic downturn

Points to a broader economic decline impacting a company's profits.

lower returns

Highlights the decreased financial gains from investments or business activities.

diminished earnings

Emphasizes that the earnings are now less than before.

FAQs

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

You can use "decrease in profitability" to describe a decline in a company's profits. For example, "The company experienced a significant "decrease in profitability" due to rising operational costs".

What are some alternatives to saying "decrease in profitability"?

Alternatives include "decline in profitability", "reduction in profitability", or "erosion of profitability".

What factors might lead to a "decrease in profitability"?

Factors can include increased operating costs, decreased sales revenue, increased competition, or changes in market conditions.

How does "decrease in profitability" affect a company's performance?

A "decrease in profitability" can negatively impact a company's financial health, leading to reduced investment, lower stock prices, and potential layoffs.