lost profits

USAGE SUMMARY

"lost profits" is a correct and commonly used phrase in written English.
It refers to the financial loss incurred when a business or individual is unable to achieve expected profits or earnings. Example: The company's failure to meet their sales target resulted in significant lost profits for the quarter.

✓ Grammatically correct

News & Media

Science

Encyclopedias

Human-verified examples from authoritative sources

Exact Expressions

59 human-written examples

If you're suing a competing business for lost profits, a settlement will be lost profits, taxed as ordinary income.

Forbes

Various factors need to be considered including replacing the key person and recouping lost profits.

Independent

No one is reporting lost profits or a declined customer base.

The New York Times

He added that it could take years to recover his lost profits.

The New York Times

Critics say ISDS tribunals give private companies too much power to sue governments for lost profits.

The Guardian - Business

Telenor denied the accusation and refused to pay a $1.7 billion fine for supposed lost profits.

The New York Times

He lost £32m, but taking into account customers' lost profits the total rose to more than £100m.

Independent

Samsung's lawyer, Bill Price, argued that Apple deserved only $52 million based solely on royalties, not lost profits.

The New York Times

The 80-year-old former soldier and politician is claiming lost profits as well as damages for the depiction.

The Guardian - Tech

The insurer undertakes to reimburse the insured for lost profits or for fixed charges incurred as a result of direct damage.

Encyclopedia Britannica

Lockheed has already lost profits, earning only $28 million of a possible $87.5 million in award fees for meeting development goals in 2010 and 2011.

The New York Times

Expert writing Tips

Best practice

When calculating "lost profits" in a legal context, ensure you have documented evidence of past performance and a clear methodology for projecting future earnings.

Common error

Don't confuse "lost profits" with "lost revenue". "Lost profits" refers to the net income a business didn't realize, while "lost revenue" is the gross income that wasn't earned. Always clarify which metric you're referring to.

Linguistic Context

The phrase "lost profits" primarily functions as a noun phrase, often serving as the object of a verb or preposition. It identifies a specific type of economic loss. As Ludwig AI explains, it's a correct and commonly used phrase in written English.

Expression frequency: Very common

Frequent in

News & Media

40%

Science

25%

Formal & Business

15%

Less common in

Encyclopedias

5%

Wiki

5%

Reference

5%

Ludwig's WRAP-UP

The analysis of "lost profits" reveals it to be a grammatically sound and frequently used noun phrase, as confirmed by Ludwig AI. Its primary function is to denote financial losses, commonly appearing in news, scientific, and business contexts. The phrase's usage spans from legal claims for damages to evaluating business performance. Remember to differentiate it from similar terms like "lost revenue". Understanding its proper application is critical for clear and accurate communication in financial discussions.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

business losses

Emphasizes the losses incurred within a business context.

profit decline

Indicates a downward trend in profitability.

forfeited gains

Highlights the profits that were given up or lost.

reduced earnings

Focuses on the decrease in overall earnings as opposed to specific profit loss.

income reduction

Focuses on the decrease in income level.

diminished returns

Emphasizes the reduced yield or return on investment.

missed revenue targets

Focuses on failure to achieve projected income.

revenue shortfall

Highlights the gap between expected and actual revenue.

financial setback

Refers to a general financial difficulty or reverse.

economic disadvantage

Highlights the unfavorable economic position resulting from the loss.

FAQs

How are "lost profits" calculated in a business context?

Calculating "lost profits" typically involves projecting future earnings based on past performance, considering factors like market trends, expenses, and potential disruptions. Forensic accountants often play a key role in this assessment.

What legal remedies are available for "lost profits" due to breach of contract?

If a contract breach causes "lost profits", the injured party may sue for damages to recover the unrealized earnings. Proving causation and quantifying the loss are crucial for a successful claim.

What's the difference between "lost profits" and "lost revenue"?

"Lost profits" represent the net income a business couldn't achieve, while "lost revenue" is the gross income that was not earned. "Lost profits" is calculated after deducting expenses from revenue.

Can a business claim "lost profits" due to a competitor's unfair practices?

Yes, if a competitor engages in unfair practices like false advertising or intellectual property infringement, the affected business can potentially sue for "lost profits" resulting from the unfair competition.