BNET Business Dictionary
Business Definition for: Profitability
- the degree to which an individual, company, or single activity makes a profit
- the condition of making a profit
Wiktionary Definition for: Profitability
- #The quality or state of being profitable.
- #The capacity to make a profit.
Additional Resources
- Implementing Activity-Based Cost Accounting, Customer Profitability, and Product-Line Analysis In a Distribution Business
- This article talks about Transactions Analysis, Cost Driver Analysis, Activity-Based Cost Accounting, Customer Profitability Analysis, Product-Line Profitability Analysis, and Business Process Analysis, which are all "tools" for strategic profitability and cost management. This article mainly emphasizes on the prior work on strategic profitability and cost management, and also how the...
- White papers 2003-01-01
- Exploring Different Approaches to Profitability Measurement
- Article talks about different approaches used to take decision on customer profitability measures. A large number of companies carry out some form of profitability measurement but much of them are wildly off target. Measuring customer profitability is straightforward process where one tracks customer revenue and product revenue, allocates the cost...
- White papers 2001-02-05
- Oil and chemicals need to function as one industry; Exxon executive sees two sectors working together to improve profitability. (Exxon Corp exec VP Robert Wilhelm in speech to European Petrochemical Association)
- Exxon executive sees two sectors working together to improve profitability. THE PETROCHEMICAL and refining sectors need to work more closely together to deal with declining unit profitability and achieve cost savings in the face of overcapaci Exxon executive...
- Research articles 1997-10-06
- Peru: pension funds firms reached 9.5% profitability.
- Peru: Pension funds firms achieved an average profitability rate of 9.52% over the period between July, 1999 and July, 2000. AFP Integra's profitability reached 10.18% over the period, followed by AFP Union Vidawith 9.8%, AFP Horizonte with 8.98% and Peru: Pension funds firms achieved an average...
- Research articles 2000-08-14
- ANHEUSER-BUSCH COMPANIES INCORPORATED - Anheuser-Busch Optimistic About US Sales, Profitability.
- Anheuser-Busch Optimistic About U.S. Beer Sales and Profitability BOCA RATON, Fla., Feb. 22 -- Anheuser-Busch (NYSE: BUD) management reviewed the company's strategies to accelerate U.S. beer sales and profitability, and reaffirmed the com Anheuser-Busch...
- Research articles 2008-02-22
- The Effect Of Working Capital Management On Firm Profitability: Evidence From Turkey
- This paper analyzes the effect of working capital management on firm profitability. In accordance with this aim, to consider statistically significant relationships between firm profitability and the components of cash conversion cycle at length, a sample consisting of Istanbul Stock Exchange ISE listed manufacturing firms for the period of 1998-2007...
- White papers 2009-01-01
- Customer Profitability Information Just isn't Enough
- Customer relationship management demands that one understands which customers create profits and those that destroy it. This paper explores how customer management solutions based on a scaleable data warehouse and a strategy to couple profitability measurements with predictive modelling can create sustained competitive advantage. Historic profitability measures just don't measure...
- White papers
- Stock Valuation and Learning about Profitability
- This paper has develop a simple approach to valuing stocks in the presence of learning about average profitability. The market-to-book ratio (M/B) increases with uncertainty about average profitability, especially for firms that pay no dividends. M/B is predicted to decline over a firm's lifetime due to learning, with steeper decline...
- White papers
- How Managerial Ideologies Moderate the Relationship Between Change in Profitability and Downsizing
- This study investigates the moderating effects of three managerial ideologies on the relationship between change in profitability and subsequent downsizing. Results of a moderated regression analysis reveal that the managerial ideologies moderate the relationship between change in profitability and downsizing in a consistent manner. Strong belief in the ideologies increases...
- White papers 2002-01-01
- Who's Managing Profitability?
- From the executive summary: ‘The most important issue facing most managers in the difficult economy is making more money from the existing business without costly new initiatives. In most companies, everyone pays attention to profitability, but few companies have a process to systematically manage profits on a day-to-day basis. The...
- White papers 2002-09-02
- The Art Of Customer Profitability Analysis
- From the executive summary: ‘It is remarkable how seldom customer-profitability analysis is discussed in the context of existing finance and accounting practices. Maybe this is because anything that has to do with customers falls traditionally under the marketing and sales umbrella. But, whatever the reasons, one needs to understand why...
- White papers 2003-07-09
- The Impact of the Growth of Large, Multistate Banking Organizations on Community Bank Profitability
- This analysis focuses on community banks in MSA markets, where the presence of larger, multistate competitors is significant. Pre-tax return on average assets is used as the measure of profitability. The intended aim of the analysis is to determine if and how community bank profitability is influenced by several different...
- White papers 2001-12-01
- Financial Performance Management and Profitability
- Finding ways to manage profitability more effectively is a cornerstone of financial performance management. The paper asserts that CFOs can drive initiatives that will enhance corporate profitability in ways that go beyond the traditional 'bean counter' approaches. Today's approach to profitability management involves using more insight to uncover both unnecessary...
- White papers 2005-03-18
- Managing Customer Profitability and Economic Value in the Telecommunications Industry: A Holistic Look at the Individual Level to Build Corporate Profitability One Customer at a Time
- This paper outlines the ways that activity-based management methodologies reflect the actual costs involved in attracting, supporting and keeping a customer. Specifically, one learns about the shift from commodities to customers in the marketplace and the importance of customer profitability as a measure of economic value. It also depicts about...
- White papers 2004-07-20
- Activity Based Management: Improving Processes and Profitability - Chapter 1, Introduction
- Customer profitability is a black hole in most managers' understanding of their business. Identifying customer revenue is easy: it's called the sales ledger. Identifying what individual customers cost - so one can understand whether or not they are profitable - is difficult. In a world in which competition, and often...
- White papers
- Managing Customer Profitability and Economic Value in the Telecommunications Industry
- Communications service providers must find a new path toward long-term, sustainable economic value. It's time to consider a holistic perspective that assesses profitability at the individual customer level, rather than the traditional focus by product line or business entity. Unlike traditional accounting systems, which generally reflect regulatory reporting requirements, Activity-Based...
- White papers
- Fiserv Announces Success of IPS-Sendero Relationship Profitability Manager; Solution is Latest Generation of IPS-Sendero's Customer Profitability System
- ATLANTA -- IPS-Sendero, a unit of Fiserv, Inc. (Nasdaq:FISV) and a provider of technology solutions and education for strategic balance sheet, profitability and corporate performance management, announced today that more than 20 financial institutions have selected its newly released Relationship Profitability Manager RPM solution.
- Research articles 2005-08-25
- Home Depot vs. Lowe's: Focus on Profitability
- Saj Karsan submits: Too many investment decisions are made with a blind bias towards choosing the company with the most market share. But profitability is what investors should be looking for, not market share. In this article by Todd Sullivan, Sullivan suggests that to avoid losing market share, Home...
- External links 2008-08-24
- Profitability Index Calculator
- This profitability index calculator can be used to figure out the benefit to cost ratio of an investment. Profitability index is simply the present value of future cash flows divided by the initial investment. When the profitability index is greater than 1.0 the present value of cash flows must be...
- Tools & templates 2008-01-01
- eSpeed Substantially Improves Profitability Outlook for 2001; 2000 Revenue Tripled Versus 1999 Period; Fourth Quarter Revenue Growth of 154% Over Previous Year
- Business Editors NEW YORK--BUSINESS WIRE--Jan. 31, 2001 EPS Exceeds Consensus Estimates by $0.06 eSpeed, Inc. (NASDAQ: ESPD), the leading interactive electronic marketplace engine for business-to-business (B2B) e-commerce, today reported record fourth quarter and full year 2000 results, and substantially revised its profitability outlook upward for 2001. ...
- Research articles 2001-01-31
