Red

AAA

DEFINITION of 'Red'

A term relating to a negative balance on a company's financial statements.

INVESTOPEDIA EXPLAINS 'Red'

The phrase "in the red" is used widely to refer to companies that have not been profitable within their last accounting period. This term is derived from the color of ink used to by accountants to enter a negative figure on a company's financial statements.

RELATED TERMS
  1. Black

    A description of a positive balance on a company's financial ...
  2. Deadweight Loss

    The costs to society created by market inefficiency. Mainly used ...
  3. Net Loss

    The result that occurs when expenses exceed the income or total ...
  4. Profit and Loss Statement - P&L

    A financial statement that summarizes the revenues, costs and ...
  5. Net Operating Loss - NOL

    A period in which a company's allowable tax deductions are greater ...
  6. Insurance Regulatory Information ...

    A collection of databases and tools used to analyze the financial ...
Related Articles
  1. What are some examples of how cash flows ...
    Personal Finance

    What are some examples of how cash flows ...

  2. What is the difference between cash ...
    Fundamental Analysis

    What is the difference between cash ...

  3. Is free cash flow the same as net free ...
    Trading Strategies

    Is free cash flow the same as net free ...

  4. What qualifies as
    Fundamental Analysis

    What qualifies as "goods" in cost of ...

Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  2. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  3. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  4. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  5. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  6. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
Trading Center