die  Rentabilität

C1

Estimated CEFR level.

/ʁɛntabiliˈtɛːt/

💰 What does 'Rentabilität' mean?

Die Rentabilität is a key term from economics and finance. It describes the relationship between the profit (or success) achieved and the capital (or effort) employed over a specific period. In other words: How profitable or lucrative is an investment, a company, or a project?

It's a measure of the efficiency and success of economic activity. High *Rentabilität* means that the invested capital is 'working' well and generating high returns.

Example: If you invest €100 and get back €110 after one year, the profit is €10. The Rentabilität is then 10% (€10 profit / €100 investment).

The word is always feminine: die Rentabilität.

Article rules for der, die, and das

📈 Grammar Insights: Declining 'die Rentabilität'

The noun 'Rentabilität' is feminine. It is mostly used in the singular as it often describes an abstract concept. The plural 'die Rentabilitäten' is possible but less common, referring to the profitability metrics of different items (e.g., projects, companies).

Declension (Singular)

Example Sentences

1. Die Rentabilität des Unternehmens hat sich im letzten Quartal verbessert.
   The company's profitability improved last quarter.
2. Der Investor prüft die Rentabilität verschiedener Anlagemöglichkeiten.
   The investor checks the profitability of various investment opportunities.
3. Wir müssen an der Rentabilität unserer Produkte arbeiten.
   We need to work on the profitability of our products.
4. Wegen mangelnder Rentabilität wurde das Projekt eingestellt.
   The project was discontinued due to lack of profitability.

🎯 Usage in the Business World

Die Rentabilität is a key indicator in business life, investment decisions, and financial analysis.

• Context: You talk about the *Rentabilität* of companies, projects, products, investments, or capital assets.
• Usage: It's often used in reports, analyses, business plans, and when evaluating business results. Ratios like *Eigenkapitalrentabilität* (Return on Equity, ROE) or *Umsatzrentabilität* (Return on Sales, ROS) are common.
• Distinction:
  • Gewinn (der): Absolute amount left over (revenue - costs). Rentabilität relates this profit to the capital employed.
  • Ertrag (der): Similar to profit, often related to investments (interest, dividends). Rentabilität measures the efficiency of this return.
  • Wirtschaftlichkeit (die): Broader term describing the ratio of benefit/output to cost/input. Rentabilität is a specific form of Wirtschaftlichkeit related to capital.

🚨 Caution: High *Rentabilität* isn't everything. One must also consider risks, sustainability, and other factors.

🧠 Mnemonics for Rentabilität

Mnemonic for the Article:

Words ending in -tät (like Qualität, Aktivität, Universität) are almost always feminine in German. Therefore: die Rentabilität.

Mnemonic for the Meaning:

Think of "Rent". A good investment gives you a good "Rent" (return, profit). Rentabilität measures how well your investment gives you a "Rent" – i.e., how profitable it is. It sounds similar to the English word "rentability" which also relates to yielding rent or return.

↔️ Synonyms & Antonyms

Similar but Different Words:

• Rente (die): Pension, retirement income, or regular payment from capital.
• Rentner/in (der/die): Pensioner, retiree.

😂 A Little Joke

Fragt der Chef den neuen Controller: "Wie steht es um unsere Rentabilität?"
The boss asks the new controller: "How's our profitability?"

Antwortet der Controller: "Ausgezeichnet! Wenn wir aufhören würden, Gehälter zu zahlen und Miete zu überweisen, wären wir Marktführer!"
The controller replies: "Excellent! If we stopped paying salaries and rent, we'd be market leaders!"

📜 Poem about Rentabilität

Was bringt das Geld, das man investiert?
What does the invested money bring?
Wird der Einsatz auch honoriert?
Will the effort be rewarded too?
Man rechnet hin, man rechnet her,
One calculates back and forth,
Die Antwort zu finden, ist nicht schwer.
Finding the answer is not hard.

Der Gewinn geteilt durchs Kapital,
The profit divided by the capital,
Das Ergebnis ist zentral.
The result is central.
Die Rentabilität, klar und rein,
Profitability, clear and pure,
zeigt, ob sich Müh' und Einsatz schrein'.
Shows if effort and input cry out (i.e., pay off).
Ist sie hoch, lacht der Investor,
If it's high, the investor laughs,
ist sie tief, schließt man das Tor.
If it's low, one closes the gate.

🤔 Little Riddle

Ich messe den Erfolg pro eingesetztem Euro,
I measure success per euro invested,
bin in Bilanzen wichtig, sowieso!
I'm important in balance sheets, anyway!
Bin ich hoch, freut sich der Chef gar sehr,
If I am high, the boss is very happy,
bin ich niedrig, wird's oft schwer.
If I am low, things often get difficult.
Ich ende auf "-tät" und bin feminin,
I end in "-tät" and am feminine,
sag, wer oder was bin ich denn?
Tell me, who or what am I then?

Solution: die Rentabilität

💡 Other Interesting Facts

Word Composition (Wortzusammensetzung):

The word is composed of:

• rentabel: Adjective meaning "profitable", "rewarding". It comes from the French "rentable", related to "rente" (income, yield).
• -ität: A suffix that forms feminine nouns from adjectives, expressing a quality or state (e.g., naiv -> Naivität (naivety), aktiv -> Aktivität (activity)).

Meaning in Practice: There are different types of Rentabilität, e.g.:

• Eigenkapitalrentabilität: Return on Equity (ROE) - Profit relative to equity.
• Gesamtkapitalrentabilität: Return on Assets (ROA) or Return on Investment (ROI) - Profit (+ debt interest) relative to total capital.
• Umsatzrentabilität: Return on Sales (ROS) - Profit relative to revenue.