amortization

noun
am·​or·​ti·​za·​tion | \ ˌa-mər-tə-ˈzā-shən How to pronounce amortization (audio) also ə-ˌmȯr- \

Definition of amortization

1 : the act or process of amortizing
2 : the result of amortizing

Examples of amortization in a Sentence

Recent Examples on the Web Multiples for transactions—calculated as the ratio of median enterprise value to earnings before interest, taxes, depreciation and amortization—increased across industries in 2021 compared with the prior year, according to Bain. Kristin Broughton, WSJ, 23 Dec. 2021 Holcim said Malarkey would earn $120 million in 2022 — excluding interest, taxes, depreciation and amortization — on $600 million in sales. oregonlive, 23 Dec. 2021 Surprisingly, the loan program that provides multifamily property owners with the longest amortization, the highest leverage and often the lowest interest rate is a program that is not well known even by many of the industry’s top players. Matthew Avital, Forbes, 20 Sep. 2021 But amortization, the term for depreciating nonphysical assets, was less straightforward. Robert Faturechi, ProPublica, 8 July 2021 Management has set an ambitious goal to double earnings before interest, taxes, depreciation, and amortization (Ebitda) to some $6 billion by 2023. Phil Wahba, Fortune, 10 Aug. 2020 At the high end of the price range, the company’s enterprise value would equal 33 times its earnings before interest, taxes, depreciation and amortization. Jacky Wong, WSJ, 8 Dec. 2021 Ferrari announced its 3rd quarter results last week, with earnings before interest, tax depreciation and amortization (EBITDA) jumping 12% to €371 million ($429 million) compared with the same period last year. Neil Winton, Forbes, 8 Nov. 2021 Peloton expects to be profitable—before interest, taxes, depreciation and amortization—by fiscal 2023. Mark Gurman, Fortune, 4 Nov. 2021

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'amortization.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of amortization

1810, in the meaning defined at sense 1

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The first known use of amortization was in 1810

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Dictionary Entries Near amortization

amortisseur

amortization

amortize

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Last Updated

9 Jan 2022

Cite this Entry

“Amortization.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/amortization. Accessed 21 Jan. 2022.

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More from Merriam-Webster on amortization

Britannica.com: Encyclopedia article about amortization

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