Black

DEFINITION of 'Black'

A description of a positive balance on a company's financial statements. A company would be said to be "in the black" if it is profitable or, more specifically, if the company produces positive earnings after accounting for all expenses. Conversely, a company with negative earnings would be said to be "in the red."

BREAKING DOWN 'Black'

The phrase "in the black" is widely used to refer to the condition of companies that have been profitable in their last accounting period. This term is derived from the color of ink used by accountants to enter a positive figure on a company's financial statements. It is always better to be in the black as this indicates solid business performance.

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