Depreciation tax shield

Depreciation Tax Shield
Depreciation Tax Shield definition :
The value of the tax write-off on depreciation of plant and equipment.
What's A Spread?

DEPRECIATION TAX SHIELD - The value of the tax write-off on depreciation of plant and equipment.
DEPRESSED MARKET - Market in which supply overwhelms demand, leading to weak and lower prices.

Depreciation tax shield: The reduction in tax expense in any given year due to the reduction in income that arises from the recognition of depreciation expense on capital assets.

Differential costs: Synonymous with relevant costs.

A non-cash expense that provides a source of free cash flow. Amount allocated during the period to amortize the cost of acquiring long-term assets over the useful life of the assets.
Depreciation tax shield ...

See also: Tax shield, Write-off, Non-cash expense, Expense, Free Cash Flow