market.news — Markets without borders
Financial Metrics

Depreciation

Accounting allocation of an asset's cost over its useful life.

In depth

Non-cash expense that reduces reported earnings without affecting cash flow. Methods: straight-line, accelerated. Real economic depreciation often exceeds accounting depreciation, which is why FCF (subtracts capex) is more conservative than EBITDA.

Related terms

Looking for more financial terms?

Browse Full Glossary →