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 The agreement came six weeks before the start of a trial that is intended to be a litmus test to help assess how much money the industry defendants in nearly 2,300 cases consolidated in federal court may eventually have to pay. New York Times, "Major Drug Maker Is Close to Settling Case to Avert First Federal Trial in Opioid Crisis," 6 Sep. 2019 In June of 2017, former Prime Minister Theresa May made the same decision to call a snap election, hoping to build her majority and consolidate her authority in order to have an easier time passing a Brexit deal. Stephen Paduano, The New Republic, "Boris Johnson Goes for Broke," 6 Sep. 2019 For its new headquarters, the company wanted to consolidate in one place, without having either the Cambridge or Boston office give up too much of its identity in the move. Tim Logan, BostonGlobe.com, "Fighting cyber crooks, and having fun while doing it," 2 Sep. 2019 The legal move is one that could hamper an already unwieldy set of lawsuits consolidated in front of Polster. Eric Heisig, cleveland.com, "Ohio AG Dave Yost again seeks control of opioid litigation, asks appeals court to halt first federal trial," 30 Aug. 2019 Come October, an extensive and complex collection of approximately 2,000 opioid lawsuits consolidated in a multidistrict litigation in Ohio will get underway. Ellen Florian, Fortune, "What the Sackler Offer and the J&J Opioid Verdict Tell Us About the Next Big Test for Drugmakers—an Ohio Trial in October," 27 Aug. 2019 Biden’s rivals will use their time on the debate stage to try and consolidate support in that progressive lane. Alexandra Desanctis, National Review, "Is Biden Really Democrats’ Best Bet?," 29 July 2019 The idea behind the project was to consolidate data in a way that allows patterns of potential retaliatory evictions to more easily come to light. Alison Dirr, Milwaukee Journal Sentinel, "Milwaukee renters can now easily see a landlord's eviction record before signing a lease," 29 July 2019 The struggling startup will also close another local facility and consolidate its operations in Blue Ash in a bid to save money and speed its path to profitability, its founders said in a statement. Alexander Coolidge, Cincinnati.com, "Everything But The House closing non-Ohio locations, moving HQ to Blue Ash," 9 July 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

6 Nov 2019

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
How to pronounce consolidate (audio)

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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