Ad
related to: depreciation and amortization explained
Search results
Results From The WOW.Com Content Network
Types of Depreciation Explained. There are multiple ways to calculate depreciation. Each is suited to different asset types and financial strategies. ... Depreciation and amortization both ...
An asset depreciation at 15% per year over 20 years [1] In accountancy, depreciation refers to two aspects of the same concept: first, an actual reduction in the fair value of an asset, such as the decrease in value of factory equipment each year as it is used and wears, and second, the allocation in accounting statements of the original cost of the assets to periods in which the assets are ...
A company's earnings before interest, taxes, depreciation, and amortization (commonly abbreviated EBITDA, [1] pronounced / ˈ iː b ɪ t d ɑː,-b ə-, ˈ ɛ-/ [2]) is a measure of a company's profitability of the operating business only, thus before any effects of indebtedness, state-mandated payments, and costs required to maintain its asset base.
Amortization is the acquisition cost minus the residual value of an asset, calculated in a systematic manner over an asset's useful economic life. Depreciation is a corresponding concept for tangible assets. Methodologies for allocating amortization to each accounting period are generally the same as those for depreciation.
If you own a vehicle, you probably know "depreciation" as that evil force that makes your car start losing value the moment you drive it off the lot. If you have a mortgage -- or any other loan ...
Amortization applies to your intangible assets and gives you a better idea of your business’s value.
A professional investor contemplating a change to the capital structure of a firm (e.g., through a leveraged buyout) first evaluates a firm's fundamental earnings potential (reflected by earnings before interest, taxes, depreciation and amortization and EBIT), and then determines the optimal use of debt versus equity (equity value).
For premium support please call: 800-290-4726 more ways to reach us