absorb the losses

USAGE SUMMARY

The phrase "absorb the losses" is correct and usable in written English.
It can be used in contexts where one party takes on the financial impact of losses incurred, often in business or investment discussions. Example: "In order to maintain our reputation, we have decided to absorb the losses from the failed project rather than passing them on to our clients."

✓ Grammatically correct

News & Media

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

Is there enough capital to absorb the losses?

The Economist

They absorb the losses from artists who don't sell.

The New York Times - Arts

They would not absorb the losses of hopelessly insolvent institutions.

Harvard Business Review

If a bank loan is not repaid, however, the bank itself must absorb the losses.

The Economist

It will leave some pondering this weekend whether the talent pool is deep enough to absorb the losses.

The New York Times - Sports

A real capital cushion would have allowed the banks to absorb the losses instead of the taxpayers.

The New York Times

If the fund earned less than 12 percent, other investors, not the three pension systems, would absorb the losses.

The New York Times

Mahmoud Karzai argued that while improprieties clearly occurred, Kabul Bank had enough assets to absorb the losses.

The New York Times

But if Tribune struggles and the stock price continues to fall, the employees will absorb the losses.

The New York Times

Fortunately for the Welshman he had built enough of a lead to absorb the losses and go on to win.

The Guardian - Sport

By doing so they are sending a clear message that Europe has to decide how to absorb the losses necessary to slash Greece's debt.

The New York Times

Expert writing Tips

Best practice

When using "absorb the losses" in financial contexts, ensure you clearly identify who or what is absorbing the losses to avoid ambiguity. For example, "The company decided to absorb the losses rather than lay off employees."

Common error

Avoid using "absorb the losses" without clearly specifying who or what is doing the absorbing. Saying simply, "The losses were absorbed" leaves the reader wondering who took responsibility.

Linguistic Context

The phrase "absorb the losses" functions as a verb phrase indicating the capacity or action of an entity to manage or internalize financial setbacks. This is evident in various examples provided by Ludwig, such as banks absorbing losses from loan defaults or companies absorbing losses from unsuccessful projects.

Expression frequency: Very common

Frequent in

News & Media

70%

Formal & Business

20%

Academia

5%

Less common in

Science

3%

Reference

1%

Wiki

1%

Ludwig's WRAP-UP

The phrase "absorb the losses" is a verb phrase widely used to describe the capacity or action of managing financial setbacks. As Ludwig AI points out, it is grammatically correct and commonly used in contexts related to finance, business, and risk management. Predominantly featured in news and media sources, its neutral register makes it suitable for various professional and formal communications. While "absorb the losses" is about accepting financial impact, related terms like "mitigate the losses" focus on reducing the severity of such impact. When employing "absorb the losses", clarity is key to ensure the audience understands who or what is taking on the financial responsibility.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

cover the losses

Focuses on having enough resources to offset or compensate for negative financial results.

offset the losses

Emphasizes counterbalancing financial setbacks with gains or other resources.

shoulder the losses

Implies taking responsibility for and managing negative financial outcomes.

bear the brunt of the losses

Highlights enduring the most severe impact of negative financial outcomes.

mitigate the losses

Stresses actions taken to reduce the severity or impact of negative financial results.

cushion the losses

Suggests providing a buffer or financial support to lessen the negative effects.

swallow the losses

Implies begrudgingly accepting negative financial outcomes.

take the hit

Colloquial expression for accepting the negative financial impact.

digest the losses

Suggests processing and integrating the impact of financial setbacks.

accommodate the losses

Describes making adjustments to fit the changed financial condition caused by the losses.

FAQs

How can I use "absorb the losses" in a sentence?

You can use "absorb the losses" to indicate that an entity is taking on or covering financial setbacks. For example, "The bank's capital reserves allowed it to absorb the losses from the loan defaults."

What's a more formal alternative to "absorb the losses"?

For a more formal alternative, consider using phrases like "cover the losses" or "offset the losses", which convey a similar meaning in professional contexts.

Is it correct to say "absorb the loss" instead of "absorb the losses"?

While grammatically correct, "absorb the loss" is less common. "Absorb the losses" is typically used when referring to multiple instances of financial setbacks or a general negative financial impact. See also: "absorb the loss".

What's the difference between "absorb the losses" and "mitigate the losses"?

"Absorb the losses" means to take on the financial impact, while "mitigate the losses" means to reduce the severity or impact of those losses. One is about accepting the result, and the other is about lessening its effects.