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.

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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.
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Recent Examples on the Web

It was consolidated with Tuscaloosa High School in 1979. Mark Inabinett | Minabinett@al.com, al, "Alabama Roots: Breaking down the list of the greatest 100 NFL careers," 13 July 2019 The ash will then be consolidated into a smaller space, farther from the banks of the river, where it will be covered with a synthetic liner like the ones used for modern landfills. Dennis Pillion | Dpillion@al.com, al.com, "Alabama Power sticks to plan to cover coal ash ponds, despite concerns," 12 July 2019 Neither schools, nor police nor fire departments were consolidated in the final plan. Peter Krouse, cleveland.com, "Achieving “Unigov” required political compromises in Indianapolis: Cleveland 2030, A Way Forward," 10 July 2019 The cases have been consolidated before a federal court judge in Chicago, where Boeing is based. Chris Woodyard, USA TODAY, "Boeing sets aside $100 million for 737 Max crash victims 'to bring them comfort'," 3 July 2019 The three cases will be consolidated for a single hour of arguments and heard in the court’s next term, which will begin in October. Adam Liptak, BostonGlobe.com, "Supreme Court to hear insurers’ suit on health care law," 24 June 2019 The lawsuits, in which plaintiffs seek billions in damages, have been consolidated in a federal courtroom in Cleveland, Ohio. Laura Strickler, NBC News, "Document shows drug firm knew in 2008 it was shipping large amounts of opioids," 21 June 2019 The categories were consolidated as part of a major streamlining, in which the number of categories plummeted from 109 (in 2010) to 78 (in 2011). Paul Grein, Billboard, "The Recording Academy Will Now Accept Streaming Links in Most Grammy Category Submissions," 19 June 2019 Federal-loan consolidation This program, offered by the government, is available for most types of federal loans; private loans cannot be consolidated under this program. Cheryl Winokur Munk, WSJ, "Two Ways to Simplify Your Student-Loan Debt," 16 June 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.

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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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Statistics for consolidate

Last Updated

17 Jul 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 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.

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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

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Comments on consolidate

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