Lönsam

Lönsam is a Swedish adjective meaning profitable or lucrative. It is used to describe a venture, project, product, market, or business activity that yields profit after costs and risks are considered. The term is closely related to lönsamhet, the noun form referring to profitability or the level of profitability, and to olönsam, meaning unprofitable or loss-making.

Etymology: lön comes from wage or income, and the suffix -sam conveys the sense of having that quality; together they denote something that generates profit relative to cost.

Usage: In finance, economics, and business reporting, lönsam describes when expected or realized returns cover costs and provide surplus. It can apply to a business idea, a production line, a market entry, or an investment. The term does not specify a precise amount by itself; profitability depends on factors such as price, volume, margins, capital costs, and risk.

Assessment: Lönsamhet is commonly analyzed with metrics like gross margin, operating margin, net profit, return on investment, and net present value. A project is considered lönsam if its expected net present value is positive or its hurdle rate is met, though real-world conditions can vary.

Examples: "Vi bedömer att projektet är lönsamt." "Företaget söker lönsam tillväxt i nya marknader."