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Operating in the Red

   Also found in: Legal, Wikipedia 0.01 sec.
Operating in the red
Doing business while losing money.

Operating in the Red
Describing a business that continues operations while losing money. A business may continue to operate in the red due to the extension of a loan or credit line, or because of cash flows that exist despite losses. Obviously, a company can only operate in the red for a certain period of time before making a profit or declaring bankruptcy.


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Springfield exhausted its reserves in March and is now operating in the red, he said.
After operating in the red for its first nine months, the store broke even last month for the first time, according to company officials.
The veterans office deficit notwithstanding, selectmen made it clear they would not allow the money to be used to cover departments operating in the red because of budget cuts earlier this year.
 
 
 
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