capitalize
verb
ˈkap-tə-, British also kə-ˈpi-tə-\
Definition of capitalize
1 : to write or print with an initial capital or in capitals Capitalize the names of cities and states.
2a : 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
3a : 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
: to gain by turning something to advantage capitalize on an opponent's mistake
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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
Certainly, Trump and his administration, more widely, have actively sought to capitalize on Christian nationalist rhetoric for political ends throughout Trump’s campaign and presidency. — Tara Isabella Burton, Vox, "What one pastor’s anti-Nike protest says about religion and nationalism in America," 14 Sep. 2018 The striker demands so much attention from opposing center backs that Peru is often able to capitalize on acres of space from both wings. — Luis Miguel Echegaray, SI.com, "Peru's World Cup Hopes Not Dashed Despite Paolo Guerrero's Suspension," 28 May 2018 Hasbro has a track record of developing products that kids can relate to, and with its growing presence in the digital market, Hasbro ought to be able to capitalize on kids seeking online entertainment. — Seattle Times Staff, The Seattle Times, "The Motley Fool: Companies with cash a safe bet?," 21 Apr. 2018 When James' bulldozing ways forced the Pacers to put an extra body in his path, the Cavs were able to capitalize from the outside. — Chris Fedor, cleveland.com, "Cleveland Cavaliers starting Kyle Korver helps unlock LeBron James, offense in Game 2," 19 Apr. 2018 Waist trainers, filters, photoshop, and plastic surgery used in marketing, promising to transform your body, when really their business model capitalizing on people’s insecurities. — Elisabeth Akinwale, SELF, "Here's What Competing in the CrossFit Games Teaches You About Real Life," 18 May 2018 The 1996 movie Swingers went further, setting its narrative during the ’90s swing music revival to blatantly capitalize on the same retro phenomenon. — Aaron Gilbreath, Longreads, "Finding the Soundtrack to My Desert Life," 25 Apr. 2018 RBC Capital Markets’ Gerard Cassidy says investors would be better off buying stock in banks more able to capitalize on the growing economy. — Bloomberg.com, "Fed Chair Jerome Powell Testifies to Congress," 1 Mar. 2018 In an attempt to capitalize on the re-popularity of the sauce, McDonald’s decided to bring it back for a special promotion in October. — Adam Lukach, RedEye Chicago, "Szechuan sauce returns: McDonald's re-launches sauce at locations nationwide after last fall's botched promo," 26 Feb. 2018These 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
: 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)
See the full definition for capitalize in the English Language Learners Dictionary
capitalize
verb
\
Kids Definition of capitalize
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.
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capitalize
transitive verb
\
Legal Definition of capitalize
1a : 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
2a : 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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