Recoupable, in a financial or economic context, describes something that can be recovered or regained, typically through compensation, reimbursement, or profit. It signifies the potential to offset losses or expenses. This usually applies to investments, debts, or damages where the possibility exists to get back what was initially spent or lost. The recoverability of a cost or investment depends on various factors like contractual agreements, market conditions, and the nature of the expense or loss incurred. Therefore, recoupable signifies a financial outlook where a negative impact can be undone.
Recoupable meaning with examples
- The company invested heavily in research, but they determined the costs were recoupable through future product sales. The product's eventual success proved their investment plan and the expenses' recoupability. The venture capital firm assessed the risk, but their financial model deemed the investment recoupable.
- After a significant market downturn, the insurance company's strategy included only recoupable claims. They determined the policy payouts as recoupable, offering relief to policyholders. The company also considered long-term investment strategies that would improve their potential recoupability of losses. These strategies improved company resilience.
- Following the legal battle, the settlement was structured so that a portion of the damages were recoupable through the sale of the defendant's assets. The court order classified a large portion as recoupable compensation for their loss. This process provided some financial relief for the plaintiff and ensured the recoupability of the award.
- When dealing with a construction project that suffered cost overruns, the contractor explored areas where costs were recoupable, seeking adjustments to the project scope to offset additional expenses. The company’s internal financial department determined how the project's spending would be deemed as recoupable. This analysis aimed to make the company more resilient to economic down-turns.