Definition:Profitability is ability of a company to use its resources to generate revenues in excess of its expenses. In other words, this is a company’s capability of generating profits from its operations. What Does Profitability Mean?
Profit margin is the measure of a business, product, service's profitability. Rather than a dollar amount, profit margin is expressed as a percentage. The higher the number, the more profit the business makes relative to its costs. Businesses with high profit margins Some businesses and products...
What Does "Scale" Mean in Business? To scale—or scale up—a business means growing it in such a way that its revenues increasingly outpace its costs. What Is a Scale-Up in Business? A scale-up often refers to a business that has survived its start-up phase, established itself in its...
The overall goal of asset impairment is to periodically evaluate a company's assets to make sure the total value of the assets is not being overstated. An impaired asset is one that has a market value less than what is listed on the company's balance sheet. There are various factors that...
In general terms, sustainability is the ability to maintain a specific rate or level. In a business context, it’s about maintaining or improving profitability without doing harm. Until recently, conversations about sustainability typically dealt only with slowing climate change and preserving the plane...
What does the future of e-commerce hold? And what does that mean for your business’s growth strategy? Omnichannel retail will continue to grow The way online consumers shop is often a complex journey involving several different channels. They may research a brand on Instagram, compare prices ...
A higher percentage indicates better overall profitability for your business. What Is a Good Net Profit Margin? As discussed earlier, ‘good’ profit margins depend on many factors, making it difficult to provide a one-size-fits-all benchmark. However, you can use industry averages as a ...
What is profitability index? What is net income vs. gross income? What are operating expenses? What is marginal benefit? Who gets the profits from a sole proprietorship? What is organic revenue? What does a high price-to-earnings ratio mean?
The five M’s — man, materials, machinery, minutes and money — are the foundation for growth and profitability in business management. Among these, man stands out as the driving force, responsible for mobilizing, allocating, and optimizing other resources. After all, there’s no fully viable...
George Fischer is Vice President of Earned & Emerging Media at Response Mine Interactive, an online marketing agency specializing in customer acquisition strategies, and effective lead generation strategies. In his leadership role, he is responsible for the revenue and profitability growth o...