Operating in the red

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Operating in the red

Doing business while losing money.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved