Profitability Resources

Profitability is a business’s ability to generate revenue from their products. The concept of profitability is important because it helps the firm measure the value of their products. One way of measuring profitability is looking at the bottom-line, which defines how much revenue (or revenue minus cost) is generated by selling a particular product or service and using it to cover production costs and administration. In other words, it shows how profitable a business is during a given period of time.