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

It also reduces depreciation expense and increases reported profit, sometimes by hundreds of millions of dollars.

From The Wall Street Journal

Also, latest pullback in recent yen depreciation may somewhat alleviate investors’ concerns that further yen weakness could lead to higher import prices in Japan, resulting in faster BOJ rate increases.

From The Wall Street Journal

In past cycles, the Nikkei has typically gotten a boost from yen depreciation, which increases the profits of Japanese exporters.

From The Wall Street Journal

All those stock moves leave GE Vernova valued at about 33 times earnings before interest, taxes, depreciation, and amortization, or Ebitda, expected over the coming 12 months.

From Barron's

Monday’s rise in government bond yields was also partly due to expectations that the yen’s recent sharp depreciation may prompt the BOJ to raise rates more quickly than previously thought, analysts said.

From The Wall Street Journal

Related Words

• deflation
• reduction
• slump