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

That is a 5% premium to an offer Fox, which had been seeking to consolidate ownership, announced earlier Wednesday. Shalini Ramachandran, WSJ, "Comcast’s Pursuit of Fox Just Got Tougher," 13 July 2018 Disney has agreed to pay the debt that Fox would incur buying the remaining 61%, should Fox be allowed to consolidate Sky. Meg James, latimes.com, "Comcast offers $34 billion for Sky TV, topping a bid from Fox," 11 July 2018 The ambassador tried to hook Banks up with a deal to consolidate Russian gold mines. Karla Adam, Washington Post, "Arron Banks: The brash British millionaire who backed Brexit, befriended the Russian ambassador and loves Trump," 30 June 2018 Faced with the current and potential future vacancies, the White House has been quietly reaching out to prospective hires, advertising vacant positions on job websites and considering ways to consolidate different jobs. Sarah Westwood, CNN, "White House struggles to replace departing staff," 15 June 2018 LendingClub advises people to consolidate their credit card debt with a personal loan. Paul Davidson, USA TODAY, "How a Fed rate hike could impact credit cards, mortgages, savings rates," 13 June 2018 Taxes on the sale of land, in contrast, are hefty, which is one reason for the failure to consolidate landholdings. The Economist, "India’s government claims to subsidise farmers, but actually hurts them," 12 July 2018 Meanwhile, a motion was filed Monday to consolidate that lawsuit with two other similar lawsuits — one with four Broward cities, and another with Broward and Miami-Dade counties. Lisa J. Huriash, Sun-Sentinel.com, "Here's why Parkland hasn't joined 26 other cities in suing for gun-control laws," 6 July 2018 Under one idea that surfaced from an economic task force headed by State Senate President Steve Sweeney, towns with populations under 5,000, like Oaklyn, would be required to consolidate. Max Cohen, Philly.com, "Is time up for tiny towns in New Jersey? Some say mergers would save money and lower taxes, but skeptics disagree," 3 July 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 Nov 2018

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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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