Recent Examples of amortization from the Web
At 2 million units, Jeep would account for 75% of the company's global profits before earnings, taxes, interest, depreciation or amortization, according to Morgan Stanley.
Teva’s net debt has risen to 4.56 times its earnings before interest, tax, depreciation and amortization, the company said last week.
EBITDA, which stands for Earnings before Interest, Taxes, Depreciation and Amortization, is a useful metric for understanding and stating a business's ability to generate cash flow for its owners and for judging a company's operating performance.
Earnings before interest, tax, depreciation and amortization fell to 272.5 million pounds in the 53 weeks ended April 30.
It’s taken me this long to seriously understand how amortization and interest works.
The purchase price represents 20 times Stonyfield's earnings before interest, tax, depreciation, and amortization in 2016, Danone said in a Monday announcement.
After selling the stores to Walgreens, Rite Aid’s ratio of debt to earnings before interest, tax, depreciation and amortization will be around 4.8 times, according to Mizuho Securities USA LLC analysts.
The company now expects to increase its level of debt to about 1.5 times earnings before interest, taxes, depreciation and amortization (EBITDA) by 2020.
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.
First Known Use of amortization
Financial Definition of AMORTIZATION
What It Is
How It Works
Let's assume Company XYZ owns the patent on a piece of technology, and that patent lasts 15 years. If the company spent $15 million to develop the technology, then it would record $1 million each year for 15 years as amortization expense on its income statement.
Alternatively, let's assume Company XYZ has a $10 million loan outstanding. If Company XYZ repays $500,000 of that principal every year, we would say that $500,000 of the loan has amortized each year.
Why It Matters
The length of time over which various intangible assets are amortized vary widely, from a few years to as many as 40 years. As a general rule, an asset should be amortized over its estimated useful life, or the maturity or loan period in the case of a bond or a loan. If an intangible asset has an indefinite life, such as goodwill, it cannot be amortized.
Seen and Heard
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