profitability
UK[ˌprɒfɪtəˈbɪləti]US[ˌprɑːfɪtəˈbɪləti]
n
The state or condition of yielding financial gain or profit.
n
The degree to which a business or activity is profitable.
Morpheme Breakdown
profit
ability
profit
gain
ability
capacity or quality
Etymology
The word 'profitability' is a relatively modern English formation, built upon the established noun 'profit'. The core root 'profit' entered English from Old French in the 12th century, tracing back to the Latin past participle 'profectus' of the verb 'proficere', meaning "to make progress, to advance". This Latin verb itself is a compound of 'pro-' (forward) and 'facere' (to make or do). The suffix '-ability' is a productive English morpheme derived from Latin '-abilitas', used to form abstract nouns indicating a state, condition, or capacity. Thus, the literal construction of 'profitability' is "the state or quality of making forward progress", which semantically evolved to specifically denote the capacity of an enterprise to generate financial advancement or gain.
Analysis
Structure: profit (gain) + ability (capacity or quality)
- profit: From Latin 'profectus' (advance, progress, profit), via Old French 'prufit, profit'. In this word, it functions as the core root denoting financial gain.
- ability: From Latin '-abilitas', a suffix forming nouns of quality or state from adjectives ending in '-abilis' (able). In this word, it functions as a suffix meaning "the quality or state of being".
Examples
The company's main goal is to improve its profitability within the next fiscal year.
Analysts were impressed by the sustained profitability of the new product line.
High operational costs can severely impact a small business's profitability.