Definition of Red Ink

What does the term "red ink" mean as it applies to the world of finance? What is meant by "red ink"?

When a company makes money, they are said to be "in the black". When a company loses money, they are said to be "in the red".

If a firm is "drowning in red ink", this means that they are losing substantial amounts of money. This would mean that a business is spending significantly more money (expenses) than what they are taking in (revenues), which would obviously give them a loss.

When a company moves from the red to a position of profitability, they are said to have moved "into the black".

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