erode profitability

USAGE SUMMARY

The phrase "erode profitability" is correct and usable in written English.
You can use it when discussing factors or actions that diminish or reduce a company's profit margins or overall financial performance. Example: "Increased competition and rising costs can erode profitability for many businesses in the industry."

✓ Grammatically correct

News & Media

Formal & Business

Science

Human-verified examples from authoritative sources

Exact Expressions

9 human-written examples

High rents in the UK have also helped to erode profitability.

The Guardian - Business

While those incentives are good for car shoppers, they erode profitability for G.M.

The New York Times

In addition, new international rules now being developed to require major institutions to hold more capital as a buffer against future financial crises will also erode profitability.

The New York Times

These changes would make the system safer and more transparent, but they would erode profitability in what had been one of Wall Street's most lucrative areas.

The New York Times

The SLM Corporation, the educational lender known as Sallie Mae, had its long-term credit ratings cut by Moody's Investors Service to two levels above junk Tuesday on concern that a change in the company's strategy will erode profitability.

The New York Times

For example, this year's hike in employers' national-insurance contributions (in effect a payroll tax) may initially erode profitability, but in the long term employers will shift the cost on to workers through lower wage increases.Ignoring these three taxes, the government's case looks stronger.

The Economist

Human-verified similar examples from authoritative sources

Similar Expressions

51 human-written examples

Turbulence erodes profitability; innovation marginalizes their current product offerings.

Harvard Business Review

Since then, the government has limited beef exports and imposed price controls, moves that ranchers claim are eroding profitability.

The New York Times

The entry of low-cost carriers like JetBlue and Southwest, which had taken some 25 percent of the domestic market by the middle of the decade, also eroded profitability of the legacy carriers.

The New York Times

(AP) Cable Concern's Stock Falls After Sales Decline Cable & Wireless, the British phone operator, said first-half sales fell 6percentt and price declines eroded profitability at the company's business unit, setting off a 14percentt decline in its share price.

The New York Times

[C5.] Blockbuster Tries a Remake The rise of online rental services like Netflix and the booming sales of DVD's at mass merchants have been eroding profitability at Blockbuster and other chains.

The New York Times

Expert writing Tips

Best practice

When using "erode profitability", specify the factors contributing to the decline, such as increased competition or rising costs, to provide context and clarity.

Common error

Avoid using "erode profitability" when the impact is minimal or uncertain. Use more cautious language if the effect is only potential or slight.

Linguistic Context

The phrase "erode profitability" functions as a verb phrase, where "erode" is the verb, and "profitability" is the noun serving as the object. Ludwig AI confirms its proper usage in describing the reduction or weakening of profit margins.

Expression frequency: Uncommon

Frequent in

News & Media

50%

Formal & Business

30%

Science

20%

Less common in

Wiki

0%

Encyclopedias

0%

Reference

0%

Ludwig's WRAP-UP

The phrase "erode profitability" is a grammatically sound and professionally appropriate term used to describe factors that negatively impact a company's financial performance. Ludwig AI validates its use in various contexts, primarily in news, business and to some extent scientific domains. While it is not a very common phrase, understanding its meaning and usage is crucial for effective communication in business and economic discussions. Remember to specify contributing factors to clarify the reasons behind the "erode profitability". Alternatives such as "diminish profits" or "reduce profitability" can be used depending on the desired nuance.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

Diminish profits

Focuses on the overall reduction of profits.

Reduce profitability

Emphasizes the act of making profitability smaller.

Undermine profitability

Suggests a weakening or destabilizing of profitability.

Decrease profit margins

Specifically targets the profit margin, which is a percentage.

Weaken earnings

Highlights the reduction in a company's earnings.

Damage earnings potential

Implies a long-term negative impact on future earnings.

Impair financial performance

Broadly refers to a decline in overall financial results.

Cut into profit margins

Suggests something is actively reducing the margins.

Eat into profits

Implies a gradual consumption of profits.

Adversely affect the bottom line

Refers to the ultimate impact on net profit.

FAQs

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

You can use "erode profitability" to describe factors that negatively impact a company's earnings. For example, "Increased competition and rising costs can "erode profitability" for many businesses in the industry."

What are some alternatives to "erode profitability"?

Alternatives to "erode profitability" include "diminish profits", "reduce profitability", or "undermine profitability", depending on the specific nuance you want to convey.

Which is correct, "erode profitability" or "increase profitability"?

"Erode profitability" means to decrease profits, while "increase profitability" means to raise profits. The correct choice depends on the intended meaning.

What's the difference between "erode profitability" and "affect profitability"?

"Erode profitability" implies a gradual and negative impact, whereas "affect profitability" is a more neutral term that simply means to have an influence, which could be positive or negative.