depreciation

American  

[dih-pree-shee-ey-shuhn] / dɪˌpri ʃiˈeɪ ʃən /

noun

1. decrease in value due to wear and tear, decay, decline in price, etc.

2. such a decrease as allowed in computing the value of property for tax purposes.

3. a decrease in the purchasing or exchange value of money.

4. a lowering in estimation.

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depreciation British  

/ dɪˌpriːʃɪˈeɪʃən /

noun

1. accounting

   1. the reduction in value of a fixed asset due to use, obsolescence, etc

   2. the amount deducted from gross profit to allow for such reduction in value

2. accounting a modified amount permitted for purposes of tax deduction

3. the act or an instance of depreciating or belittling; disparagement

4. a decrease in the exchange value of currency against gold or other currencies brought about by excess supply of that currency under conditions of fluctuating exchange rates Compare devaluation

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depreciation Cultural  

1. A decline over time in the value of a tangible asset, such as a house or car.

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Other Word Forms

• nondepreciation noun
• predepreciation noun
• redepreciation noun
• underdepreciation noun

Etymology

Origin of depreciation

An Americanism dating back to 1730–40; depreciate + -ion

Example Sentences

Even if that happens, and Wall Street gets profit margins correct, AST is currently trading at 20 times estimated 2029 earnings before interest, taxes, depreciation, and amortization, or Ebitda.

From Barron's

Monroe plans to maintain a strategy similar to the one it pursued with its previous fund, namely direct lending for companies with under $35 million in earnings before interest, taxes, depreciation and amortization.

From The Wall Street Journal

Noble’s car valuation, for instance, values Tesla’s EV business at about four times expected 2025 earnings before interest, taxes, depreciation, and amortization, or Ebitda.

From Barron's

Versant last year accounted for $2.2 billion in adjusted earnings before interest, taxes, depreciation, and amortization, and $6.6 billion in revenue, according to a financial presentation from Dec. 12.

From Barron's

Burry is also skeptical about the AI hyperscalers, claiming they are not accurately assessing the depreciation of their assets.

From MarketWatch

Related Words

• deflation
• reduction
• slump