capitalize
verb
, ˈkap-tə-\
Definition of capitalize
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Synonyms & Antonyms for capitalize
Synonyms
bankroll, endow, finance, fund, stake, subsidize, underwrite
Antonyms
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Examples of capitalize in a Sentence
Recent Examples on the Web
Nohelin Hernandez showed some potential with his performance but Marlon Vera capitalized on his opportunity in the second and picked up another nice win in what’s shaping up as a quality UFC career. — Todd Martin, latimes.com, "UFC 239: Jon Jones defeats Thiago Santos; Nunes stops Holm," 6 July 2019 Her challenge now is perhaps as difficult as gaining the advantage: capitalizing on it. — Liz Goodwin, BostonGlobe.com, "One viral moment can set a 2020 candidate apart — but they’re hard to come by," 6 July 2019 The right-handed pitcher's role seemed up in the air after the Dodgers capitalized on his poor pitching in back-to-back walk-off wins. — Katherine Fitzgerald, azcentral, "Arizona Diamondbacks stick with Greg Holland as closer despite rough outings in L.A.," 5 July 2019 When his star teammates went away for a weekend during AAU, Windler was given a unique opportunity and capitalized, leading his team on a deep run and picking up scholarship offers. — Chris Fedor, cleveland.com, "John Beilein gushes about Dylan Windler following Cleveland Cavaliers’ summer league debut: ‘He’s going to make everybody better’," 2 July 2019 The 23-year-old Lubin (21-1), who lost to Jermell Charlo in 2017, dominated Attou from early in the fight but really capitalized when Attou suffered a bicep injury in the third round. — Matt Young, Houston Chronicle, "Jermall Charlo takes unanimous decision over Brandon Adams to retain World Boxing Council middleweight title," 30 June 2019 Bernie Sanders of Vermont and Elizabeth Warren of Massachusetts – also had solid performances that could help them capitalize on any dip in Biden’s support. — Steven Lemongello, orlandosentinel.com, "Democratic debates in Miami produce stars and stumblers, but few candidates likely to drop out soon," 28 June 2019 Morton gave up three runs in the first inning as the Twins (52-27) capitalized on Eddie Rosario and C.J. Cron RBI singles and a wild pitch. — Betsy Helfand, Twin Cities, "Nelson Cruz delivers in clutch, Eddie Rosario injured in Twins’ win," 26 June 2019 With Scott gone to the NFL and expected starter Connor Heyward also still learning the position, there is an opportunity for Jefferson to capitalize on his raw skills and become an impact player on offense. — Chris Solari, Detroit Free Press, "Michigan State RB La'Darius Jefferson showed flashes, needs to grow," 25 June 2019These example sentences are selected automatically from various online news sources to reflect current usage of the word 'capitalize.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
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More Definitions for capitalize
capitalize
verbFinancial Definition of capitalize
What It Is
Capitalizing refers to the accounting practice of characterizing the costs of an asset purchase as a long-term asset on the balance sheet instead of an expense on the income statement.
How It Works
Companies capitalize the cost of asset purchases in order to spread out the cost of the assets over many reporting periods. This way, net income is not affected disproportionately in the reporting period in which the asset was purchased.
Rather than being listed as one large expense in one reporting period, a capitalized asset cost will be expensed via depreciation over many reporting periods. On the balance sheet, it will appear as a long-term asset and cash debit. The income statement will also account for a portion of the asset's cost via depreciation expenses.
To illustrate, suppose Company XYZ purchases equipment for $10,000. Rather than report the full $10,000 cost in that period, the company characterizes the purchase as a $10,000 long-term asset. On the balance sheet, the long-term asset account increases and the cash account decreases by $10,000.
As the long-term asset depreciates, the depreciation expense is reported on the income statement. As a result, Company XYZ's bottom line is not grossly affected by the substantial asset purchase in that period. The remainder of the $10,000 will, however, need to be continually reported as a depreciation expense until the asset has fully depreciated.
Why It Matters
Management's decision as to whether to capitalize or expense a purchase has a direct impact on its bottom line. If a company were to report the total cost of an asset purchase as an expense on its income statement (which is to say not capitalize), the cost, depending on the size, it would significantly reduce their net income figure for the reporting period.
Because earnings are probably the single most important indicator of a company's financial strength and growth potential, they are used by investment analysts to provide estimates of a company's growth potential and offer target price estimates for investors interested in purchasing shares. Therefore, company management has a huge interest in managing the way earnings are reported.
Source: Investing Answers
capitalize
verb
English Language Learners Definition of capitalize
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capitalize
verb
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capitalize
transitive verb
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