consolidate

verb
con·​sol·​i·​date | \ kən-ˈsä-lə-ˌdāt \
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.

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Other Words from consolidate

consolidator \ kən-​ˈsä-​lə-​ˌdā-​tər \ 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.
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Recent Examples on the Web

Overall, manufacturers of older generic drugs have come under heavy pricing pressure, as buyers including pharmacies and group-purchasing organizations consolidate and negotiate lower prices. Peter Loftus, WSJ, "Drugmakers Raise Prices Amid Shortages, Recalls," 18 Jan. 2019 More efforts to consolidate and give the kids a long-term space? Katherine J. Igoe, Marie Claire, "The Surprising, Sweet Reason Jennifer Lopez and Alex Rodriguez Are Selling Their Apartment," 16 Jan. 2019 President Xi Jinping, meanwhile, enters the new year after consolidating power and doesn’t seem to be in a mood to back down on the international stage. Jen Kirby, Vox, "The 7 biggest foreign news stories to watch in 2019, from Brexit to North Korea," 24 Dec. 2018 They are built to make money, and consolidate enough power to keep making it — and the executives that lead them excel by doing so with ruthless efficiency. Casey Newton, The Verge, "22 predictions for social media in 2019," 15 Dec. 2018 The Chefman triple slow cooker on Amazon has three separate crocks, allowing you to consolidate your cooking into one handy gizmo that does all of the work for you. Jessica Leigh Mattern, Country Living, "This Triple Slow Cooker Is Here to Save Your Holidays—And It's Only $40 on Amazon," 6 Nov. 2018 Cuts could be overstated, depending on how much legitimate waste single payer can actually eliminate by consolidating the administration of health care, but the projections for Medicare for All plans are going to anticipate big cuts. Dylan Scott, Vox, "5 doctors and surgeons tell us what they really think about Medicare-for-all," 10 Aug. 2018 The work to consolidate electronic tolling authorities into a single billing system was expected to be completed on June 11. Sun-Sentinel.com, "SunPass starts getting back up to speed," 3 July 2018 The plan is likely to change the way the government dolls out benefits to poor Americans—an area long-targeted by conservatives—by consolidating safety-net programs under one agency. Alan Murray, Fortune, "Alibaba v. Tencent, Trump Border Order, Jacinda Ardern Baby: CEO Daily for June 21, 2018," 21 June 2018

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.

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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

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Last Updated

6 Feb 2019

Look-up Popularity

Time Traveler for consolidate

The first known use of consolidate was circa 1512

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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 \
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.

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consolidate

transitive verb
con·​sol·​i·​date | \ kən-ˈsä-lə-ˌdāt \
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 \ noun

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