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depreciate

verb
de·​pre·​ci·​ate | \ di-ˈprē-shē-ˌāt How to pronounce depreciate (audio) \
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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Other Words from depreciate

depreciable \ di-​ˈprē-​shə-​bəl How to pronounce depreciable (audio) \ adjective
depreciatingly \ di-​ˈprē-​shē-​ˌā-​tiŋ-​lē How to pronounce depreciatingly (audio) \ adverb
depreciation \ di-​ˌprē-​shē-​ˈā-​shən How to pronounce depreciation (audio) \ noun
depreciative \ di-​ˈprē-​shə-​tiv How to pronounce depreciative (audio) , -​shē-​ˌā-​tiv \ adjective
depreciator \ di-​ˈprē-​shē-​ˌā-​tər How to pronounce depreciator (audio) \ noun
depreciatory \ di-​ˈprē-​shə-​ˌtȯr-​ē How to pronounce depreciatory (audio) \ adjective

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

 Inflation benefited working people by making debt cheap and essentially transferred money from bondholders by depreciating financial assets. — Sarah Leonard, The New Republic, "The Fall of the Meritocracy," 5 Sep. 2019 In the last five years, except for 2017, where the fall happened in September, the rupee has depreciated 3.79%, 0.3%, and 3.7% in 2015, 2016, and 2018 respectively. — Anand James, Quartz India, "Foreign investors are still not enthused by Modi government’s latest policy boost," 29 Aug. 2019 Trump subsequently re-imposed escalating sanctions on Iran, largely halting the sale of Iran’s crude oil internationally and sharply depreciating Iran’s currency. — Washington Post, "Greece says it won’t assist Iranian tanker sought by US," 21 Aug. 2019 There are four years and more than $170 million left on Westbrook’s max contract—a necessary yet hefty decision at the time, but a deal that was always set to depreciate quickly. — Jeremy Woo, SI.com, "Paul George and Russell Westbrook Trades Could Create the Perfect Thunder Rebuild," 8 July 2019 And that assumes currencies appreciating or depreciating are the only source of fluctuation in the basket. — Allison Schrager, Quartz, "Currency risk could undermine Facebook’s Libra," 28 June 2019 The vast majority of the world’s gold miners have yet to join the wave of mergers reshaping the top of their sector, even as investors say more tie-ups are necessary amid poor returns and depreciating gold reserves. — Ben Dummett, WSJ, "Investors Are Still Waiting for a Gold-Mining Merger Wave," 13 Mar. 2019 China's move earlier this month to allow its currency to depreciate—bringing shrieks of currency manipulation from President Donald Trump—has opened a new front. — Alain Sherter, CBS News, "3 reasons the U.S. economy isn't set to fall off a cliff," 20 Aug. 2019 The Chinese currency has now depreciated against the dollar, sending stock markets into a tailspin. — Jeffrey Sachs For Cnn Business Perspectives, CNN, "China isn't the economic manipulator in this trade war. Trump is," 6 Aug. 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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First Known Use of depreciate

15th century, in the meaning defined at transitive sense 1

History and Etymology for depreciate

Middle English, from Late Latin depretiatus, past participle of depretiare, from Latin de- + pretium price — more at price

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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

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