Verliesgevende

Verliesgevende is a Dutch adjective meaning loss-making or unprofitable, used to describe a business, project, or activity that incurs losses. In financial language it refers to situations where revenues do not cover the associated costs within a given period, resulting in a negative net income.

The term is typically applied to the income statement, where revenue minus operating costs, depreciation, interest, and taxes can yield a negative result. It is important to distinguish temporary losses from structural, or persistent, losses. Temporary losses may arise from cyclical downturns, one-off charges, or start-up investments, while persistent losses suggest fundamental issues with profitability or market positioning and can threaten solvency if not addressed.

Consequences and responses vary. Management may implement a turnaround strategy, such as reducing costs, improving mix or pricing, divesting underperforming assets, or pursuing new markets. Financing considerations include the risk to lenders or investors, which may affect borrowing terms or the availability of additional capital. In policy contexts, repeatedly loss-making firms can attract subsidies or restructuring support, though such interventions are typically balanced against competition rules and long-term viability.

Etymology and usage: verliesgevende derives from verlies (loss). In Dutch finance and business reporting it is commonly used to label companies, divisions, or projects that currently operate at a loss, and it contrasts with profitable or winstgevend. The English equivalents are loss-making or unprofitable.