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 Deutsche Börse AG, which owns the DAX-30 index, said Tuesday all potential members would have to achieve a measure of positive operating profit—known as earnings before interest, tax, depreciation and amortization— for two full years before joining. Paul J. Davies, WSJ, "Germany’s DAX Index Changes Rules After Wirecard Collapse," 24 Nov. 2020 Leverage will increase to two times its earnings before interest, taxes, depreciation and amortization after the deal. Myriam Balezou,, "Croda Buys Iberchem for $973 Million in Fragrance Expansion," 18 Nov. 2020 In other words, Believe could raise $20 for every $1 of earnings before interest, taxes, depreciation and amortization. Glenn Peoples, Billboard, "Will Investors Have Faith in Believe? French Music Company Is Latest to Test IPO Waters," 18 Nov. 2020 Adjusted earnings before interest, taxes, depreciation and amortization rose 1.3% to 598 million euros on the same basis. Aaron Kirchfeld,, "EQT Is Said to Approach $13 Billion Carrier KPN on Takeover," 12 Nov. 2020 Foursquare had its first profitable quarter in the final period of last year on the basis of earnings before interest, taxes, depreciation and amortization, a spokeswoman for the company told The Wall Street Journal in April. Sahil Patel, WSJ, "Foursquare CEO David Shim Steps Down," 5 Nov. 2020 The media company also recorded adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $88 million, reflecting a profit margin of 10.8%. Nathan Bomey, USA TODAY, "Gannett posts revenue decline but tops 1 million digital subscriptions in third quarter," 3 Nov. 2020 Core earnings before interest, taxes, depreciation, and amortization slipped 1.2% to 161 million francs. Andrew Marc Noel,, "Bain, Cinven Said to Team Up for $3.9 Billion Lonza Chemical Arm," 21 Oct. 2020 Companies with less than $50 million in earnings before interest, taxes, depreciation and amortization saw a 5.1% default rate, down from 6.7% in the second quarter. Kelsey Butler,, "Private Credit Default Rate Falls Due to Amendments, New Deals," 16 Oct. 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.

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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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Last Updated

28 Nov 2020

Cite this Entry

“Amortization.” Dictionary, Merriam-Webster, Accessed 5 Dec. 2020.

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