Definition
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".
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".