Operating Losses

Operating losses occur when a company's expenses related to its core business operations—such as production, salaries, and sales—exceed its revenue from sales during a specific period. This indicates that the business is not generating enough income to cover its regular operating costs, leading to a financial loss from daily activities. While not necessarily a sign of long-term trouble, persistent operating losses can suggest issues with profitability, pricing, or cost management that may require review and adjustment.