zombie company

Definition

A business that generates just enough revenue to service its debt but not enough to pay it down or grow, essentially the corporate undead. They're alive, but only technically.

Example Usage

The retail chain has been a zombie company for years, lurching from one refinancing to the next while sales slowly decay.

Origin

Economic terminology that became prevalent during Japan's 'Lost Decade' of the 1990s

Fun Fact

Low interest rates create more zombie companies by making it easier to service debt—the 2010s saw a zombie company boom that would make George Romero proud.

Source: Economic and credit analysis terminology

Related Terms

Intermediate

accountancy

The professional practice of accounting, elevated to sound more prestigious—because 'accountant' apparently needed fancier branding. It encompasses the entire field of financial reporting, auditing, tax preparation, and making sure companies follow arcane rules that change annually. The British prefer this term, Americans less so, but everyone agrees it involves lots of coffee and spreadsheets.

💰 Finance / Accounting

Beginner

Revenue

The total money a company brings in before subtracting any expenses, which is like bragging about your salary before mentioning your rent, taxes, and crippling avocado toast habit. Startups love to talk about revenue growth while conveniently forgetting to mention they spend two dollars for every dollar earned.

💰 Finance / Accounting

Intermediate

basis point

One hundredth of one percent (0.01%), because apparently regular percentages weren't confusing enough for finance professionals. When your mortgage rate increases by 25 basis points, congratulations—you're paying 0.25% more.

💰 Finance / Accounting

Beginner

Unearned Revenue

Another term for deferred revenue—cash received for work not yet performed, sitting on the balance sheet as a liability. It's having money in hand while owing labor, the service industry's constant state.

💰 Finance / Accounting

Intermediate

disbursed

The fancy financial way of saying money actually left the account and went somewhere else, as opposed to being promised, allocated, or trapped in bureaucratic purgatory. It's the moment when funds stop being theoretical and become someone else's problem or pleasure. Government agencies and large organizations love this word because it makes spending sound more sophisticated.

💰 Finance / Accounting

Intermediate

stress testing

Modeling how a portfolio or institution would perform under adverse scenarios like market crashes or economic meltdowns. Like a financial fire drill, except the fire is hypothetical and the panic is very real.

💰 Finance / Accounting

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