consolidate

verb
con·​sol·​i·​date | \ kən-ˈsä-lə-ˌdāt How to pronounce consolidate (audio) \
consolidated; consolidating

Definition of consolidate

transitive verb

1 : to join together into one whole : unite consolidate several small school districts
2 : to make firm or secure : strengthen consolidate their hold on first place He consolidated his position as head of the political party.
3 : to form into a compact mass The press consolidates the fibers into board.

intransitive verb

: to become consolidated specifically : merge The two companies consolidated.

Keep scrolling for more

Other Words from consolidate

consolidator \ kən-​ˈsä-​lə-​ˌdā-​tər How to pronounce consolidator (audio) \ noun

Examples of consolidate in a Sentence

The two funds will consolidate into one. The administration hopes that such measures will consolidate its position. Rebel forces have consolidated their hold on the region.
See More

Recent Examples on the Web

And the Democratic field has consolidated a bit, not just on the debate stage, but in the minds of voters. CBS News, "Elizabeth Warren rises as Joe Biden clings to delegate edge — CBS News Battleground Tracker," 8 Sep. 2019 As hospitals across the country have consolidated, five of the top 10 hospital systems by net patient revenue are associated with the Roman Catholic Church, according to Definitive Health. Kaiser Health News, The Denver Post, "Centura Health’s firing of Colorado doctor sets off national challenge to aid-in-dying laws," 4 Sep. 2019 Draft legislation backed by Yost would consolidate all local lawsuits against opioid companies under a state umbrella and allow the state to negotiate on behalf of all residents and allot any settlement money accordingly. Andrew Welsh-huggins, BostonGlobe.com, "Ohio attorney general sues to stop upcoming opioid trials," 1 Sep. 2019 Just four months ago, Connect consolidated with the one of the city’s most popular startup advocates, the San Diego Venture Group. San Diego Union-Tribune, "San Diego startup hub Connect snags $65K in grants for local entrepreneurs," 30 Aug. 2019 As written, the plan would consolidate only three of the lots. Daily Pilot, "Costa Mesa council to take another look at the Plant, a long-discussed commercial-residential project," 30 Aug. 2019 The courts later consolidated that suit, filed in the District of Columbia courts, with others making similar allegations. Joe Mahr, chicagotribune.com, "Lawsuit filed against Apple, Samsung after Chicago Tribune tests cellphones for radiofrequency radiation," 29 Aug. 2019 In late 2018, the former president consolidated his political efforts by folding Organizing for Action, a nonprofit political group that grew out of his presidential campaign, into the redistricting committee. Alexa Díazstaff Writer, Los Angeles Times, "Obama takes on partisan gerrymandering with new initiative," 27 Aug. 2019 The department will consolidate the Adult Residential Facility with another underused facility for the elderly in the same building. Trisha Thadani, SFChronicle.com, "Critics blast city’s plan to shuffle mental health beds at SF General Hospital," 21 Aug. 2019

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'consolidate.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

See More

First Known Use of consolidate

circa 1512, in the meaning defined at transitive sense 1

History and Etymology for consolidate

Latin consolidatus, past participle of consolidare to make solid, from com- + solidus solid

Keep scrolling for more

Learn More about consolidate

Statistics for consolidate

Last Updated

12 Sep 2019

Look-up Popularity

Time Traveler for consolidate

The first known use of consolidate was circa 1512

See more words from the same year

Keep scrolling for more

More Definitions for consolidate

consolidate

verb

Financial Definition of consolidate

What It Is

In the accounting world, to consolidate means to combine the financial statements of a company and all of its subsidiaries, divisions or suborganizations.

How It Works

Let's assume Company XYZ is a holding company that owns four other companies: Company A, Company B, Company C and Company D. Each of the four companies pays royalties and other fees to Company XYZ. At the end of the year, Company XYZ's income statement might reflect a large amount of royalties and fees and very few expenses (because these are recorded on the subsidiary income statements). Thus, an investor looking solely at Company XYZ's holding company financial statements could easily get a misleading view of the entity's performance. However, if Company XYZ wants to consolidate its financial statements -- that is, it essentially "adds" the income statements, balance sheets and cash flow statements of XYZ and the four subsidiaries together -- the results give a better picture of the Company XYZ enterprise as a whole.

In the example below, notice how the holding company's assets are only $1 million, but the consolidated number shows that the entity as a whole controls $213 million in assets.

In the real world, Generally Accepted Accounting Principles (GAAP) require companies to eliminate intercompany transactions when the consolidate their financial statements (that is, they must exclude movements of cash, revenue, assets or liabilities from one entity to another) so as not to double count. Some examples include interest one subsidiary earns from a loan made to another subsidiary, "management fees" that a subsidiary pays the parent company and sales and purchases among subsidiaries.

Why It Matters

Consolidated financial statements provide a comprehensive overview of a company's operations. Without them, investors would not have an idea of how well an enterprise as a whole is faring.

GAAP dictates when and how companies should consolidate and whether certain entities need to be consolidated. Thus, it is important to note that entities in which a company owns only a minority interest do not often need to be consolidated. For instance, if Company XYZ owned only 5% of Company A, it probably would not have to consolidate Company A's financial statements with its own.

Companies often break out their consolidated statements by division or subsidiary so investors can see the relative performance of each, but in many cases this is not required, especially if the company owns 100% of the division or subsidiary.

Source: Investing Answers

consolidate

verb

English Language Learners Definition of consolidate

: to join or combine together into one thing
: to make (something, such as a position of power or control) stronger or more secure

consolidate

verb
con·​sol·​i·​date | \ kən-ˈsä-lə-ˌdāt How to pronounce consolidate (audio) \
consolidated; consolidating

Kids Definition of consolidate

1 : to join together into one whole : unite The towns consolidated their high schools.
2 : strengthen The leader consolidated his power.

Keep scrolling for more

consolidate

transitive verb
con·​sol·​i·​date | \ kən-ˈsä-lə-ˌdāt How to pronounce consolidate (audio) \
consolidated; consolidating

Legal Definition of consolidate

: to join together into one whole: as
a : to combine (two or more lawsuits or matters that involve a common question of law or fact) into one — compare class action

Note: Consolidation of matters in the federal courts is governed by Rule 42 of the Federal Rules of Civil Procedure. Consolidated cases may become one single action with a single judgment, or may retain their individual identities although tried together. The court may also try one representative case and render a judgment binding on the other cases.

b : to combine (two or more corporations) to form one new corporation — compare merger

Other Words from consolidate

consolidation \ kən-​ˌsä-​lə-​ˈdā-​shən How to pronounce consolidation (audio) \ noun

Keep scrolling for more

Comments on consolidate

What made you want to look up consolidate? Please tell us where you read or heard it (including the quote, if possible).

WORD OF THE DAY

concealment of treason or felony

Get Word of the Day daily email!

Test Your Vocabulary

The Exceptions Quiz III

  • one green toy robot amidst many red toy robots
  • Which of these words does not mean "nonsense"?
Name That Thing

Test your visual vocabulary with our 10-question challenge!

TAKE THE QUIZ
Bee Cubed

Test Your Knowledge - and learn some interesting things along the way.

TAKE THE QUIZ
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!