low profitability

USAGE SUMMARY

"low profitability" is correct and usable in written English.
You can use it to talk about a company or industry's lack of profits or low profit margin. For example, "The automotive industry saw a sharp decline in profitability this year due to rising costs."

✓ Grammatically correct

News & Media

Formal & Business

Science

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

In addition, a low profitability of the digital business models of 15% is assumed, while using a profit margin of 25% is more realistic.

European Parliament

Other chip makers in Taiwan are struggling with low profitability.

The New York Times

Still, low profitability is leading to losses at Sony's video game business.

The New York Times

The company said the assets had been affected by declining quality and low profitability.

The Guardian - Business

"Many banks, reacting to both low profitability and regulatory pressure, are continuing to shrink these operations.

The Guardian - Business

This low profitability has not stopped Amazon EU growing to become a business of considerable substance.

The Guardian - Tech

The firms' low profitability is one reason investors value them more cheaply than their foreign counterparts.

The Economist

Providers of online computing may be under a grey, drizzly stratus of low profitability.

The Economist

First, low market share does not inevitably lead to low profitability.

Harvard Business Review

There must be some other explanation (environmental restrictions, past low profitability).

The Washington Post

As it is, many European companies are suffering from low profitability and too much debt, the report said.

The New York Times

Expert writing Tips

Best practice

When discussing "low profitability", provide specific metrics or context, such as industry benchmarks, historical data, or contributing factors, to give a clearer picture of the situation.

Common error

Avoid attributing "low profitability" to a single cause without considering multiple factors like market conditions, operational inefficiencies, or competitive pressures.

Linguistic Context

The phrase "low profitability" functions as a noun phrase, where the adjective "low" modifies the noun "profitability". Ludwig AI examples confirm that it commonly acts as the subject or object of a sentence, describing a state or condition.

Expression frequency: Very common

Frequent in

News & Media

42%

Formal & Business

26%

Science

24%

Less common in

Encyclopedias

2%

Wiki

1%

Academia

1%

Ludwig's WRAP-UP

In summary, "low profitability" is a commonly used phrase to describe inadequate financial returns in a business or industry. Ludwig AI indicates the phrase is grammatically correct and widely used across various contexts, including News & Media, Formal & Business, and Science. While the phrase is generally negative, describing financial struggles or challenges, it can also be strategically employed or temporarily accepted. When discussing "low profitability", providing specific metrics is essential for context. Alternatives such as "poor earnings" or "slim margins" can be used to add nuance to the description.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

limited profitability

Highlights a restricted or reduced capacity to generate profit.

meager profits

Implies that profits are small or insignificant.

poor earnings

Focuses specifically on the inadequacy of earnings.

weak returns

Highlights the insufficient financial gains from investments or business operations.

slim margins

Emphasizes the small difference between revenue and costs.

negative returns

Indicates losses rather than profits.

unprofitable operations

Directly states that business activities are not generating profit.

financial underperformance

Broadly refers to the failure to meet financial expectations or targets.

deficient revenue

Focuses on the lack of sufficient income.

unsatisfactory financial results

Indicates that the financial outcomes are not meeting expectations.

FAQs

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

You can use "low profitability" to describe a business or sector's financial performance, such as, "The company's "low profitability" led to cost-cutting measures".

What are some alternatives to "low profitability"?

Alternatives include "poor earnings", "weak returns", or "slim margins", depending on the specific nuance you want to convey.

What factors typically contribute to "low profitability"?

Common causes of "low profitability" include high operating costs, intense competition, declining market share, and economic downturns.

Is "low profitability" always a negative indicator?

While generally negative, "low profitability" can sometimes be strategic, such as during a market penetration phase where a company prioritizes growth over immediate profits, or it can be temporary due to specific market conditions.