in the red

Meaning

This phrase describes a business, department, or individual that is losing money, spending more than they earn, or has a negative bank balance. It comes from the traditional bookkeeping practice of using red ink to show losses.

Examples

• The startup has been in the red for three consecutive quarters.

  The startup has been in the red for three consecutive quarters.

• If we don't cut down on operational costs, we will end up in the red by December.

  If we don't cut down on operational costs, we will end up in the red by December.

• The company's latest financial report shows that their retail division is still in the red.

  The company's latest financial report shows that their retail division is still in the red.

• After a rough year, the airline finally managed to stop operating in the red.

  After a rough year, the airline finally managed to stop operating in the red.

• I need to check our budget because I suspect our marketing department is in the red.

  I need to check our budget because I suspect our marketing department is in the red.

Common Mistakes

• ✗ The company is on the red this month.

  ✓ The company is in the red this month.

  The correct preposition is 'in', reflecting being 'in' a state of debt or deficit.

• ✗ We had a lot of red numbers this quarter.

  ✓ We were in the red this quarter.

  While 'red numbers' is a literal translation from some languages, native speakers use 'in the red' or 'running a deficit'.

Related Expressions

Practice

• If we continue to spend at this rate, our department will be ___ by next month.

  💡 losing money or having a negative balance

  Show answer

  in the red

• The restaurant operated ___ for its first year before finally making a profit.

  💡 with a financial deficit

  Show answer

  in the red