Low-yielding
Describing an investment, asset, or endeavor that produces a relatively small return or profit compared to the initial investment, effort, or other related factors. It signifies inefficiency or poor performance in generating income, benefits, or output. This term applies across various contexts, including financial investments (e.g., bonds), agricultural practices (e.g., crop yields), and industrial processes (e.g., manufacturing output). The low-yielding nature can be due to various factors like poor market conditions, inefficient practices, inherent limitations, or a lack of resources. Evaluating the 'low-yielding' attribute is crucial for making informed decisions about asset allocation, resource management, and process improvement to maximize returns and efficiency. The concept emphasizes the importance of optimizing performance and identifying areas where improvements can lead to higher yields.
Low-yielding meaning with examples
- The investor was disappointed by the low-yielding nature of the municipal bonds, which barely covered inflation. Despite their perceived safety, the minuscule returns meant the portfolio experienced real losses in purchasing power over the long term. The low-yielding bonds, coupled with rising interest rates, forced the investor to seek alternative investments with greater potential for higher returns.
- The farmer struggled with the consistently low-yielding harvest in his field due to poor soil quality and drought conditions. Despite using fertilizers, the crops remained stunted. The farmer's decision to switch to a different, more resistant variety proved critical in improving the yields and boosting profits in subsequent years. This highlights the influence of external factors on low-yielding potential.
- The company had a low-yielding marketing campaign, showing limited returns on its advertising investment. Despite significant spending, the campaign failed to attract new customers. The low-yielding campaign necessitated a complete overhaul of the marketing strategy. Analyzing market trends and understanding customer needs led to an improvement in the results.
- The manufacturing plant suffered from a low-yielding production line, generating fewer products per hour than projected, leading to higher per-unit costs. Inefficient machinery and poorly trained staff hampered the throughput. Upgrading the equipment and providing staff training and support improved the efficiency and lowered production expenses. This dramatically increased its overall performance.