red ink

red ink — noun

1. an amount of money that a business, organization, or government has lost, shown

1.nounB2
Definition

an amount of money that a business, organization, or government has lost, shown as a negative figure in its financial records

Example

Allison checked the quarterly statement and saw red ink of nearly two million dollars.

collocation: red ink of [amount]

Sora warned the board that red ink in the education budget would force difficult cuts.

red ink in [budget/department]

Common collocations
  • red ink of + [amount]
  • projected red ink
  • red ink in the [budget/report]
Synonyms
  • deficit

    more general term; can describe any shortfall, not just financial

  • loss

    simpler and more common in everyday speech

  • shortfall

    emphasises that income fell short of what was needed

Antonyms
  • black ink

    direct opposite in financial jargon — profit instead of loss

  • surplus

    formal term for excess income over spending

Usage Note

Used mainly in the context of financial reports, budgets, and accounting statements. The amount of red ink is usually expressed as a specific sum.

Common Mistakes

The company had red ink of losing customers.
The company had red ink of five hundred thousand dollars.
red ink always refers to a monetary loss amount, not the reason for the loss.

2. a financial situation in which a company, organization, or person regularly spen

2.nounB2
Definition

a financial situation in which a company, organization, or person regularly spends more money than they receive, resulting in continued losses

Example

Diego was hired to help the business escape red ink and return to profit.

escape / get out of red ink

The city hospital has operated in red ink for three consecutive years.

operate in red ink

Common collocations
  • in red ink
  • operate in red ink
  • escape / get out of red ink
  • be mired in red ink
Synonyms
  • the red

    shorter informal form of 'in the red' — used in the same situation

  • insolvency

    stronger; means unable to pay debts, not just operating at a loss

Antonyms
  • profitability

    the opposite economic condition — earning more than you spend

  • the black

    informal opposite; being 'in the black' means profitable

Usage Note

Frequently combined with prepositions: 'in red ink' for the ongoing condition; 'out of red ink' or 'escape red ink' for moving to profitability. This sense describes a continuing state rather than a specific loss figure, which distinguishes it from sense 1.

Common Mistakes

The red ink of this company is five percent.
The company is in red ink, with a five percent loss margin.
percentages describe the rate of loss, not the loss amount itself.

Etymology

EnglishEnglish accounting jargon

The phrase comes from the traditional accounting practice of writing negative numbers and losses in red ink, while profits were written in black ink. This convention dates back to at least the early 20th century and is the source of the related expressions 'in the red' and 'in the black'.

First known use

1926

1926, in the meaning defined at sense 1