depreciate

verb

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de·pre·ci·ate | \ di-ˈprē-shē-ˌāt

depreciated; depreciating

Definition of depreciate

transitive verb

1 : to lower in honor or esteem often depreciates the importance of her work

2a : to lower the price or estimated value of depreciate property

b : to deduct from taxable income a portion of the original cost of (a business asset) over several years as the value of the asset decreases

intransitive verb

: to fall in value advised us to sell the stock before it depreciates

Other Words from depreciate Synonyms & Antonyms Choose the Right Synonym More Example Sentences Learn More about depreciate

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Choose the Right Synonym for depreciate

decry, depreciate, disparage, belittle mean to express a low opinion of. decry implies open condemnation with intent to discredit. decried their defeatist attitude depreciate implies a representing as being of less value than commonly believed. critics depreciate his plays for being unabashedly sentimental disparage implies depreciation by indirect means such as slighting or invidious comparison. disparaged polo as a game for the rich belittle usually suggests a contemptuous or envious attitude. belittled the achievements of others

Examples of depreciate in a Sentence

These changes have greatly depreciated the value of the house. The value of the house has depreciated greatly.

Recent Examples on the Web Hemant Baijal, co-head of the global debt team at OppenheimerFunds, believes the U.S. currency will depreciate further over the next two or three years as markets continue factoring in normalizing monetary policy around the world. — Ira Iosebashvili, WSJ, "Dollar Extends Last Year’s Slide Into 2018," 1 Apr. 2018 This isn’t a time to depreciate Cleveland’s performance, not on a night when the Cavs actually showed a pulse at that end of the floor. — Chris Fedor, cleveland, "Cleveland Cavaliers: Is stingy defensive performance in opener a sign of things to come or a one-night deception?," 24 Oct. 2019 In total, China lost $1.28 trillion, and it was forced to tap into its foreign exchange reserves to prevent its currency from rapidly depreciating even further. — Laura He, CNN, "Money has been leaving China at a record rate. Beijing is battling to stem the tide," 19 Dec. 2019 Azarenko said that prices haven't changed much in dollar terms since sanctions were imposed in 2014, while the ruble has depreciated by about 50 percent since that time. — Alex Sazonov, chicagotribune.com, "Moscow luxury real estate sales are soaring," 25 Sep. 2019 But mobile homes typically depreciate quickly, rather than increasing in value like a traditional house. — Washington Post, "Precarious spot for mobile home owners as investors swoop in," 15 Sep. 2019 But mobile homes typically depreciate quickly, rather than increasing in value like a traditional house. — Thomas Peipert, The Denver Post, "Precarious spot for mobile home owners as investors swoop in," 15 Sep. 2019 And Land Rover vehicles are the least likely to depreciate quickly among luxury brands. — Nathan Bomey, USA TODAY, "These 2020 cars and trucks are the most likely to hold their value on the used market," 18 Nov. 2019 The value of such reassurances is depreciating almost as fast as the pound. — The Economist, "A long-feared currency crisis has begun to bite in Lebanon," 3 Oct. 2019

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

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Dictionary Entries near depreciate

depreciation accounting

depreciation charge

depreciation insurance

Statistics for depreciate

Last Updated

16 Jan 2020

Cite this Entry

“Depreciate.” The Merriam-Webster.com Dictionary, Merriam-Webster Inc., https://www.merriam-webster.com/dictionary/depreciate. Accessed 19 January 2020.

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More Definitions for depreciate

depreciation

noun

Financial Definition of depreciation

What It Is

Depreciation is a term used for tax and accounting purposes that describes the method a company uses to account for the declining value of its assets.

How It Works

An asset acquired in 2005 is unlikely to be worth the same amount five years later; most of the time, the asset will have worn down, been depleted, or become obsolete.

While there are many ways to calculate depreciation, the most basic is the "straight line" method. Under this method, the depreciation of a given asset is evenly divided over its useful lifetime. The method entails dividing the cost of the asset (minus its salvage value) by its estimated useful life.

For example, let's say Company XYZ bought a machine that helps them produce widgets. The machine cost $30,000 and is expected to last 10 years. It's "salvage value" (the amount the machine is worth after 10 years of use) is $3,000. In this particular case, Company XYZ would take a non-cash charge of $2,700 per year to account for the asset's annual depreciation [($30,000 - 3,000) / 10 = $2,700].

Why It Matters

Neither depreciation (or its related concept, amortization) will directly affect the cash flow of a company as it is a non-cash expense. The company is not spending money as a result of an assets depreciation, it just wouldn't be worth as much should the company be liquidated.

As most assets age, they decline in value. Depreciation is a term used for tax and accounting purposes that describes the method that a company uses to account for the declining value of its fixed assets (or tangible assets that have an estimated useful life of one year or longer). Several different methods are commonly used to account for depreciation. These include:

Straight Line: Using this method, the depreciation of a given asset is evenly divided over its useful lifetime. The method entails dividing the cost of the asset (minus its salvage value) by its estimated useful life. For example, let's say a fixed asset costs $30,000, is expected to last 10 years, and its "salvage value" is $3,000. In this particular case, a company would take a non-cash charge of $2,700 per year to account for the asset's annual depreciation. ($30,000 -3,000) / 10 = $2,700
Accelerated Depreciation: Using this method, the greatest depreciation deductions occur in the first years after an asset is purchased.
Capitalized: Using this method, a particular asset is never depreciated.
Expensed: Using this method of depreciation, the asset is fully depreciated in the first year.
150% Declining Balance: This method of depreciation uses 150% of the straight-line value for the first year. The same percentage is then applied to the residual balance each subsequent year.
Double Declining Balance: This method uses twice the straight-line percentage for the first year. The same percentage is then applied to the balance each subsequent year.

Source: Investing Answers

depreciate

verb