capitalize

verb cap·i·tal·ize \ ˈka-pə-tə-ˌlīz , ˈkap-tə- , British also kə-ˈpi-tə- \

Updated on: 13 Oct 2017

Definition of capitalize

capitalized; capitalizing

transitive verb

1 :to write or print with an initial capital or in capitals

Capitalize the names of cities and states.

2 a :to convert into capital

capitalize the company's reserve fund

b :to treat as an amortizable investment in long-term capital assets rather than as an ordinary operating expense to be charged against revenue for the period in which it is incurred

capitalize development costs

3 a :to compute the present value of (an income extended over a period of time)

b :to convert (a periodic payment) into an equivalent capital sum

capitalized annuities

4 :to supply capital for

intransitive verb

:to gain by turning something to advantage

capitalize on an opponent's mistake

See capitalize defined for English-language learners

See capitalize defined for kids

Examples of capitalize in a Sentence

Remember to capitalize the I in Internet.
Capitalize the first word of your sentence.
She rarely capitalizes her name when she signs her e-mails.
The venture was capitalized with a loan of one million dollars.
You can capitalize your investment at any time.

Recent Examples of capitalize from the Web

But the Yankees were unable to capitalize on Miranda’s largess.

— wallace matthews, New York Times, "By Any Other Nickname, It’s a Frustrating Night for the Yankees," 26 Aug. 2017
Despite Westwood's three TD passes and the defense forcing three turnovers, the Warriors couldn't capitalize on that momentum.

— blake baumgartner, Naperville Sun, "Tanner Westwood sparks rally, but Waubonsie Valley loses to Lake Park," 26 Aug. 2017
In the late 1880s and early 1900s, promoters used print outlets, such as the celebrity magazine the Police Gazette, to publicize fights and capitalize on gambling interests.

— nancy kidder, The Atlantic, "Four Ways of Looking at Mayweather vs. McGregor," 25 Aug. 2017
Recipes whose names are capitalized can be found in the Recipe Finder at washingtonpost.com/recipes.

— charlotteobserver, "How to travel with tomatoes, freeze pesto and other food questions," 22 Aug. 2017
Capitalizing on the murder of two German missionaries, the country attacked and invaded the city of Qingdao in 1897, establishing what amounted to a German colony in Shandong province.

— lorraine boissoneault, Smithsonian, "The Surprisingly Important Role China Played in WWI," 17 Aug. 2017
In the beginning a lot of people questioned me on capitalizing on this.

— kevin acee, sandiegouniontribune.com, "Quite a journey Chargers fans taking to L.A.," 11 Aug. 2017
The White House, eager to capitalize on any idea to advance reform after last week’s debacle, seems intent upon using this plan as a means of gathering momentum for further health-care negotiation.

— alexandra desanctis, National Review, "Health-Care Reform Can’t Die," 3 Aug. 2017
In other words, a Mongol is a mongol, capitalized or not.

— Longreads, "My Mongolian Spot," 1 Aug. 2017

These 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.

Origin and Etymology of capitalize

see ³capital

NEW! Time Traveler

First Known Use: 1764

See Words from the same year

capitalize Synonyms

Synonyms

bankroll, finance, endow, fund, stake, subsidize, underwrite

Antonyms

defund

Related Words

grubstake; cofinance, refinance; advocate, aid, back, champion, endorse (also indorse), patronize, sponsor, support; maintain, nourish, provide (for); clear, defray, discharge, foot, liquidate, pay, pay off, pay up, quit, recompense, settle, spring (for), stand; refund

Other Business Terms

amortize, caveat emptor, clearinghouse, divest, due diligence, emolument, green-collar, marque, overhead, perquisite

Financial Definition of CAPITALIZE

capitalize

verb

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 Defined for English Language Learners

capitalize

verb

Definition of capitalize for English Language Learners

: to use a capital letter to write, print, or type (a letter of the alphabet)
: to begin (a word or name) with a capital letter
: to provide the money that is needed to start or develop (a business)

CAPITALIZE Defined for Kids

capitalize

verb cap·i·tal·ize \ ˈka-pə-tə-ˌlīz \

Definition of capitalize for Students

capitalized; capitalizing

1 :to write with a beginning capital letter or in all capital letters

2 :to provide money needed to start or develop (a business)

3 :to gain by turning something to advantage

The winner capitalized on his opponent's mistakes.

—

capitalization

\ˌka-pə-tə-lə-ˈzā-shən\ noun

Law Dictionary

capitalize

transitive verb cap·i·tal·ize \ ˈka-pət-ᵊl-ˌīz \

legal Definition of capitalize

capitalized; capitalizing

1 a :to convert into capital

capitalize the company's earnings

b :to treat as a capital expenditure rather than an ordinary and necessary expense

the cost of the merger must be capitalized

2 a :to compute the present value of (an income extended over a period of time) — compare amortize

b :to convert (a periodic payment) into an equivalent capital sum

capitalized annuities

3 :to supply capital for

had capitalized the business with her own savings

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