Money-losing

Describing a business, investment, or venture that is experiencing financial losses; generating more expenses than revenue. This term signifies a negative financial outcome, often indicating poor performance, mismanagement, or unfavorable market conditions. It implies a depletion of capital and may necessitate corrective actions to restore profitability, such as cost-cutting, revenue enhancement, or restructuring. The duration of a money-losing period can vary from a single fiscal quarter to several years, representing a significant challenge for the concerned entity. The extent of the losses can also fluctuate, ranging from marginal deficits to substantial financial setbacks.

Money-losing meaning with examples

• The company's foray into the electric vehicle market proved to be a money-losing venture. High production costs and low sales volume resulted in significant quarterly losses. Management is now considering shutting down this segment and redirecting resources to more profitable projects in order to boost overall company performance and investor confidence.
• Following the economic downturn, the small business struggled to stay afloat, becoming a money-losing operation. Reduced customer spending and increased operational expenses led to a steady decline in their financial performance. To avoid bankruptcy, they applied for government relief funding and aggressively cut operational costs.
• Investment in the new tech startup turned out to be money-losing for the investors after the company failed to achieve its milestones. Investors who had high hopes for the company saw their financial returns plummet. The startup was forced to liquidate its assets, and investors lost a considerable amount of their initial capital.
• The expansion into the international market turned out to be money-losing for the chain restaurant. Although sales were good, shipping, staffing, and maintenance costs were excessive. The restaurant was unable to compete with more established restaurants.
• Despite significant investment in marketing, the new product launch became a money-losing experience. Initial sales were underwhelming. The company was forced to offer discounts and re-evaluate its pricing strategies in order to reverse this adverse financial outcome.