Recent Examples of amortization from the Web
That’s a measure which compares the company’s enterprise value — market cap plus debt, minus cash — to its earnings before taxes, interest, depreciation and amortization.
More specifically, borrowers using Enkla can avoid amortization requirements introduced in Sweden in the past two years.
Moreover, Moody's Investors Service analyst Gregory Fraser predicted that earnings before interest, taxes depreciation, and amortization, would grow to about $275 million by the end of EMI's fiscal year of 2017.
GreenSky is on track to generate more than $200 million in earnings before interest, taxes, depreciation and amortization in 2018, people familiar with the matter said.
After amortization payments, your remaining mortgage balance was $211, 837.
The California Public Employees’ Retirement System is advancing a staff recommendation that would shorten the amortization period for new pension liabilities from 30 years to 20.
Not including certain items like interest, taxes, depreciation and amortization, Uber’s loss was $775 million in the fourth quarter, compared with $1.02 billion in last year’s third quarter.
Liabilities now correspond to 4.8 times earnings before interest, taxes, depreciation and amortization, up from from 1.3 times two years ago.
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.
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
What made you want to look up amortization? Please tell us where you read or heard it (including the quote, if possible).