Fyrirtækið græddi peninga í fyrra.

Because -ið is the definite article attached to the noun.

• fyrirtæki = company
• fyrirtækið = the company

In Icelandic, the word for the is usually added to the end of the noun rather than written as a separate word.

Here, fyrirtæki is a neuter noun, and -ið is the definite ending for the nominative/accusative singular.

It is in the nominative singular.

That is because fyrirtækið is the subject of the sentence, the thing doing the action:

• Fyrirtækið = the company
• græddi = made/earned/profited
• peninga = money
• í fyrra = last year

So the company is the one that made the money, which is why it appears in the nominative.

Græddi is the past tense of the verb græða.

So:

• að græða = to make a profit, earn, gain
• græddi = made a profit, earned, gained

In this sentence, it means something like made money or earned money.

The ending -ddi is a normal past-tense pattern for this kind of verb.

Because peninga is the accusative plural, and the verb græða takes a direct object in the accusative.

• peningar = nominative plural
• peninga = accusative plural

So:

• Fyrirtækið græddi peninga = The company made money

Also, Icelandic often uses peningar in the plural where English uses uncountable money.

So even though English says money, Icelandic commonly says peningar literally monies in form, and in this sentence that becomes peninga because of the accusative.

It is indefinite.

• peninga = money
• peningana = the money

So this sentence means the company made money in a general sense, not that it made some specific previously mentioned money.

Í fyrra means last year.

Even though í often means in, this is a fixed expression and should be learned as a whole:

• í fyrra = last year

So you should not translate it too literally as in last year in English. It just means last year.

A more formal or more transparent alternative is:

• á síðasta ári = in the last year / last year

But í fyrra is very common and natural.

Because í fyrra is an established Icelandic time expression. It does not work word-for-word the same way English does.

Languages often package time expressions differently. For example:

• í dag = today
• í gær = yesterday
• í fyrradag = the day before yesterday
• í fyrra = last year

So the best approach is to learn í fyrra as a set phrase meaning last year.

Yes. Icelandic word order is flexible, but the finite verb usually stays in the second position in main clauses.

The original sentence is:

• Fyrirtækið græddi peninga í fyrra.

You could also say:

• Í fyrra græddi fyrirtækið peninga.

That also means The company made money last year, but now í fyrra is emphasized more.

Notice what happens:

• when í fyrra moves to the front,
• græddi still stays in second position,
• so fyrirtækið moves after the verb.

This is a very important Icelandic pattern.

Yes, græða peninga is a very natural way to say make money, earn money, or profit.

Depending on context, græða can suggest:

• earning money
• making a profit
• gaining financially

So in a business sentence like this one, The company made money last year or The company turned a profit last year are both good ways to understand it.

Yes, fyrirtæki is neuter, and that matters for its forms.

For example:

• fyrirtæki = a company
• fyrirtækið = the company

Because it is neuter, the definite singular ending is -ið here.

Gender matters in Icelandic because it affects:

• articles
• adjective agreement
• pronouns
• some case endings

So it is useful to learn nouns together with their gender.

It would be:

• Fyrirtækið græðir peninga.

That means The company makes money or The company is making money, depending on context.

So you can compare:

• græðir = present tense
• græddi = past tense

This kind of comparison is a good way to remember the verb form used in the original sentence.