Definition of Negative return:
The result of a business or company over a certain period of time having a financial loss or lower returns on a particular investment. This often occurs in a companys early years due to the company using their funds to get the business running. This can also be referred to as a negative return on equity and used in business situation as other investments such as stocks may also have a negative return.
A negative return occurs when a company or business has a financial loss or lackluster returns on an investment during a specific period of time. In other words, the business loses more money than it brings in and experiences a net loss. Some businesses report a negative return during their early years because of the amount of capital that initially goes into the business to get it off the ground. Spending a lot of money/capital when not bringing in any revenue will lead to a loss. New businesses generally do not begin making a profit until after a few years of being established.
A negative return can also be referred to as 'negative return on equity'.
Meaning of Negative return & Negative return Definition