• An idea, enterprise or product that generates significant profits is profitable.
  • In business, a product can only be considered profitable if it generates significant profits in the form of net income, not gross revenue.
  • A product can be called profitable only in the past tense. In the present tense, it indicates potential, not reality.
  • Investors can analyze the company’s financial statements and certain financial ratios to determine whether the company is profitable or not.
  • One of the most profitable companies in the world is Apple Inc.