amortization vs depreciation
Definitions
noun
- payment of an obligation in a series of installments or transfers
- the reduction of the value of an asset by prorating its cost over a period of years
Examples
It is paying nearly 11 times historic earnings before interest, taxes, depreciation and amortization, or Ebitda, at the pricier end of recent deal multiples and a premium to the 7-to-8 multiples on which L+G's nearest publicly traded rivals, Germany's Elster Group and Itron , of the U.S., trade.
The appropriate response to this environment is for Congress to provide an additional two years over which these companies can amortize their 2007 and 2008 losses, with the first two years of this extended amortization period requiring only interest payments on the obligation.
Philips reconfirmed its intention to step up investment in research and development and customer-facing resources to around €200 million a year, and said it was maintaining its 2013 mid-term target, to raise sales by 4% to 6% and reach earnings before interest, taxes and amortization of 10% to 12% of sales.
Definitions
noun
- decrease in value of an asset due to obsolescence or use
- a decrease in price or value
- a communication that belittles somebody or something
Examples
The story in Romania is broadly similar, though it did receive a boost from the depreciation of the leu.
Depreciation of furniture and equipment is computed on the straight-line basis over estimated useful lives of five to ten years.
Earnings before interest, depreciation and tax doubled to 600,000.
