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in the red
/ɪn ðə rɛd/
operating at a loss
After three consecutive quarters in the red, the company announced major layoffs.
The company was losing money for three straight quarters before cutting jobs.
Finance
financial/business
operating at a financial loss; not profitable
The startup burned through $2 million in its first year and remained in the red.
The startup spent $2 million and still did not make a profit.
Analysts warned that if the firm stays in the red much longer, it may face bankruptcy.
Analysts said the company could go bankrupt if it continues to lose money.
Often used to describe companies, projects, or financial periods that are not generating profit.
Collocations
stay in the redcontinue operating at a lossturn out of the redbecome profitable againremain in the redkeep losing money
Related Phrases
Pro Tip
Avoid confusion with 'in the red' vs 'in the black'
Remember that 'in the red' means losing money (bad), while 'in the black' means making a profit (good). The color contrast reflects traditional accounting practices.
Gold Rule
Context matters
Use 'in the red' only when referring to financial loss in a business or accounting context. It is not used for personal financial situations unless in a figurative or humorous sense.
Word Origin
The phrase originates from the practice of recording financial losses in red ink in accounting ledgers, while profits were written in black ink. This color-coding system dates back to at least the 15th century in Italian merchant accounting.
Usage Notes
Commonly used in business and financial contexts to describe a state of financial loss. It is not typically used for personal finances unless in a metaphorical or humorous context.
Word Breakdown
in
within a state or condition
prepositionthe
definite article
articlered
financial loss (historically recorded in red ink)
nounEnglish Dictionary