Speaking to The Times' The Business podcast, Ratcliffe defended the massive clearout of over 400 club staff, some many long-serving.
"The costs were just too high," he said. "There are some fantastic people at Manchester United but there was also a level of mediocrity and it had become bloated.
"I got a lot of flak for the free lunches, but no-one's ever given me a free lunch.
"There are two halves to a football team - there is the business side and the sports side. The biggest correlation, like it or not, between results and any external factor, is profitability. The more cash you have got, the better squad you can build.
"If you look at our results for last year we have the highest revenues ever. Profitability, the second highest ever. Those numbers will get better.
"Manchester United will become the most profitable football club in the world, in my view, and from that will stem, I hope, a long-term, sustainable, high level of football."