Profitability is a key metric that measures the ratio of profit to capital employed or revenue in a company and thus indicates the ability of a startup to be financially successful and generate value. This metric is crucial for assessing the long-term viability and sustainable growth of a company, as it provides insight into how efficiently resources are being utilised to generate profits. By increasing profitability, startups can strengthen their financial health, attract investors and lay the foundations for a lasting market presence and expansion.