profitability margins

USAGE SUMMARY

The phrase "profitability margins" is correct and usable in written English.
It can be used when discussing the financial performance of a business, specifically referring to the difference between revenue and costs expressed as a percentage of revenue. Example: "The company's profitability margins have improved significantly over the last quarter, indicating better cost management."

✓ Grammatically correct

News & Media

Academia

Science

Human-verified examples from authoritative sources

Exact Expressions

8 human-written examples

Many CIOs hesitate to link technology investments to financial performance metrics such as EBITDA (earnings before interest, tax, depreciation, and amortization); earnings per share; profitability; margins; and revenue.

Harvard University

"If your profitability margins are basically running 3percentt and you chop off 1percentt, it doesn't leave you that much to operate with," he said.

The New York Times

Manufacturing firms at the global frontier employ more people, pay higher wages and enjoy higher profitability margins.

Forbes

That's because this is the time to do a re-cap on how it all went, including sales, profitability, margins and satisfaction.

Forbes

As a result, firms that take costly actions to source products in a sustainable way could find themselves with a higher cost structure, with lower profitability margins, and as a result at a competitive disadvantage.

Forbes

Profitability margins should increase over time as recognition and saturation are achieved in newer markets, but it is difficult to ignore the regulatory burdens and lawsuits the business is facing, which could steer it off course.

TechCrunch

Human-verified similar examples from authoritative sources

Similar Expressions

52 human-written examples

The independent variables include hospital size (Total Assets), capital structure (Financial Leverage), profitability (Profit Margin), operating efficiency (Asset Turnover, Days Patients Accounts Receivable, and Average Age Of Plant), asset liquidity (Current Ratio and Days Cash On Hand), and labor costs (Salary to Revenue).

BMC Health Services Research

Only when it's time to scale should you start asking about profitability, margin, and revenue projections.

Harvard Business Review

For example, if you want to pitch a customer experience initiative to the CFO, you should paint a picture of how this increases revenue with existing customers, enhances NPS to gain new customers and overall increases your profitability margin.

Forbes

"We'd rather see slower growers with improvements in profitability and expanding profit margins".

The New York Times

So when they look at the results of of their campaigns, they can see their gross profit margins and profitability after ad spend.

TechCrunch

Expert writing Tips

Best practice

When analyzing a company's financial health, consider "profitability margins" in conjunction with other key metrics like revenue growth and debt levels to gain a comprehensive understanding.

Common error

Avoid prioritizing revenue growth over "profitability margins". A company with high revenue but low margins may not be as financially stable or attractive to investors as one with healthier margins, even with lower revenue.

Linguistic Context

The phrase "profitability margins" functions as a noun phrase that describes a financial metric. It is used to quantify and evaluate the relationship between a company's profits and its revenues, as seen in Ludwig's examples.

Expression frequency: Uncommon

Frequent in

News & Media

40%

Academia

30%

Science

30%

Less common in

Formal & Business

0%

Encyclopedias

0%

Wiki

0%

Ludwig's WRAP-UP

In summary, "profitability margins" is a noun phrase used to evaluate a company's financial performance by relating profits to revenue. Ludwig AI confirms that the phrase is grammatically sound and acceptable. While not extremely common, it appears frequently in contexts such as News & Media, Academia and Science. Related phrases include the simpler phrase ""profit margins"" or "margin of profitability". When using the term, remember to prioritize it alongside revenue to properly assess financial stability, and understand it in context with other financial metrics.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

profit margins

Omits "ability", focusing on the direct relationship between profit and revenue.

margin of profitability

Rephrases the term to emphasize the 'margin' aspect, the degree to which something is profitable.

net profit margin

Specifies that the profit margin refers to net profit, the profit after all expenses.

gross profit margin

Specifies that the profit margin refers to gross profit, the profit before operating expenses.

profitability rate

Replaces "margins" with "rate", focusing on the ratio of profit to revenue.

earnings margins

Focuses on earnings instead of profit, which can include other factors than pure profit.

operating margins

Specifies that the margin is related to the company's operations.

return on sales

Focuses on returns on sales, or how efficiently a company is at generating revenue.

margin of return

Focuses on the return that is associated with the margin.

profitability index

Refers to a compound measure instead of a percentage/ratio.

FAQs

How do you use "profitability margins" in a sentence?

You can use "profitability margins" to discuss a company's financial performance, for example: "The company's improved "profitability margins" indicate better cost control and operational efficiency."

What's the difference between "profitability margins" and "profit margins"?

"Profit margins" is a more concise term that refers to the same metric as "profitability margins", which is the ratio of profit to revenue. The terms are largely interchangeable.

What are some factors that can affect "profitability margins"?

Several factors can influence "profitability margins", including changes in production costs, pricing strategies, competition, and overall economic conditions. Efficient cost management and effective pricing are crucial for maintaining healthy margins.

Why are "profitability margins" important for investors?

"Profitability margins" are crucial for investors because they indicate how efficiently a company is generating profit from its revenue. Higher margins typically suggest better financial health and potential for future growth, making the company a more attractive investment.