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.