Definition of amortization
1 : the act or process of amortizing
2 : the result of amortizing
Recent Examples of amortization from the Web
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.
VW hopes to raise between 1.4 and 1.5 billion euros from the sale of Ducati, valuing it at 14-15 times its earnings before interest, taxes, depreciation and amortization (EBITDA) of about 100 million euros, the sources said.
The buyer says the price is about four times Calkins’ profit from the newspapers over the last year, not counting financial costs (earnings before interest, taxes, depreciation and amortization).
The ban, however, has an amortization clause that gives the legal dispensaries five years to operate with a possible six-month extension to recoup their investments before shutting down.
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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