Profitability
What Profitability means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Profitability
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Reference: Pearson Edexcel
Gross profit, operating profit and profit for the year, found by deducting cost of sales, operating expenses, interest and tax in turn.
The overarching objective achieved when lower average costs, greater pricing power and higher sales volumes combine.
A firm's ability to generate profit relative to its revenue, expressed as a percentage.
Topics that use Profitability
- Growth (Pearson Edexcel A-Level)
- Profit and loss (Pearson Edexcel A-Level)
Related terms
- Culture clash
- Economies of scale
- Financial performance
- Gross profit margin
- Internal communication
- Market entry
- Market exit
- Market power
Using Profitability in the exam
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