Definition, Meaning & Synonyms

negative-profit

noun

/ˈnɛɡətɪv ˈprɒfɪt/

Definition

A financial situation in which a company’s expenses exceed its revenues, resulting in a loss.

Examples

After reviewing the quarterly figures, it was clear the company had posted a negative profit for the first time.
Investors were concerned about the negative profit reported in the annual financial statement.
To turn around the negative profit, the management implemented cost-cutting measures.

Meaning

Negative profit indicates that a business is operating at a loss. This situation arises when the total costs of running the business are higher than the total income received from sales or services.