Erosion

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Dictionary Says

Definition of 'Erosion'

The gradual redirection of funds from profitable segments or projects within a business to new projects and areas. Although managers almost always consider money flowing into new projects as investments in long-term growth, the short-term effect is a slow erosion of cash flow.
Investopedia Says

Investopedia explains 'Erosion'

Erosion is often used to refer to profit margins, but it all comes down to a business taking money from profitable areas and using it to fund areas that may or may not be profitable in the future. If the investments work out, then erosion isn't an accurate term. However, many good businesses have been eroded into ruin by aggressive expansion into new, less profitable areas simply for the sake of seeming active. The balance between good expansion and profit erosion can be hard for even the savviest management team to handle.
Search results for

'Erosion'

  • Credit Crisis: Market Effects | Investopedia

    http://www.investopedia.com/university/credit-crisis/credit-crisis7.asp
    The most troubling aspect of the credit crisis was the
    erosion of investor confidence and trust. ...

  • Retiring On Investment Interest: Can It Be Done?

    http://www.investopedia.com/articles/retirement/09/retire-interest-only.asp
    ... Unfortunately, that person might immediately experience erosion of the portfolio
    because by year two, $60,000 could be insufficient. ... Managed erosion is OK. ...

  • ON Semiconductor Looking At Another Off Year

    http://stocks.investopedia.com/stock-analysis/2012/ON-Semiconductor-Looking-At-Another-Off-Year-ONNN-FCS-DELL-GLW0104.aspx
    ... Not only did the company have to deal with a pair of natural disasters, but the
    company saw a widespread erosion in the chip market throughout the year. ...

  • ConAgra Reheats Some Leftovers

    http://stocks.investopedia.com/stock-analysis/2011/ConAgra-Reheats-Some-Leftovers-CAG-K-GIS-RAH-KFT-HNZ-CPB1220.aspx
    ... Gross margin skidded a bit; ConAgra is no different than Kellogg (NYSE:K) or General
    Mills (NYSE:GIS) in that it's seeing margin erosion from higher food prices ...

  • Ralcorp Needs To Offer More

    http://stocks.investopedia.com/stock-analysis/2011/Ralcorp-Needs-To-Offer-More-RAH-CAG-GIS-K-KFT-THS-CPB1130.aspx
    ... Core revenue missed estimates slightly, with reported volume growth of 3% and an
    internal volume contraction of 4%. Volume erosion was consistent across ...

  • Surprises Among Best Mid Cap Stocks

    http://stocks.investopedia.com/stock-analysis/2009/Surprises-Among-Best-Mid-Cap-Stocks-GCI-DYN-WYNN-NRG-AMD-THC1007.aspx
    ... Newspapers have seen a slow erosion of advertising revenue and readership over the
    last decade as many businesses started to shift ad budgets toward the ...

  • Deducting Disaster: Casualty And Theft Losses

    http://www.investopedia.com/articles/taxes/08/itemized-deduction.asp
    ... city. Unfortunately, erosion causes several of the other houses adjacent to
    this property to collapse and fall over the cliff. However ...

  • How Governments Influence Markets

    http://www.investopedia.com/articles/economics/11/how-governments-influence-markets.asp
    ... money feels good for awhile, especially for investors who see corporate profits
    and share prices shooting up, but the long-term impact is an erosion of value ...

  • 2011 In Review: Energy Services Come Up Short

    http://stocks.investopedia.com/stock-analysis/2011/2011-In-Review-Energy-Services-Come-Up-Short-HOS-CLB-SLB-HAL-CAM-NOV-RIG1228.aspx
    ... fall before recovering back in the $90s. Although natural gas prices did break above
    $5 early in the year, most of the year has seen a steady erosion in prices ...

  • Your Dividend Payout: Can You Count On It?

    http://www.investopedia.com/articles/stocks/05/031505.asp
    ... If you look at AT&T's income statements in the run-up to December 2000 dividend
    cut, it's hard to miss the dramatic erosion in AT&T's earnings between 1998 and ...

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