Amortization
Investment Dictionary - Amortization
Amortization reduces the stated value of intangible assets which, as a rule, have no physical substance but add benefits to a business.
Amortization & Loan Repayment
The amount of the payment that will be required each period will depend on the amortization schedule that is chosen.
amortization investment & finance definition
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An accounting technique that reduces the cost of an intangible asset, such as goodwill, by assessing the charge against income over a specific amount of time.
Amortization
A plan for a borrower to pay off debt through periodic payments of principal and interest. For example the down payment of a mortgage.
Amortization
A process that expenses the value of an intangible asset over time.
Related Terms: ...
Amortization 1. Reduces the book value of an intangible asset (goodwill does not get amortized).
2. Reduces cost basis of a bond bought at a premium.
3. Reducing debt through periodic payments of principal.
Definition
Amortization
Refers to the regular recognition of an expense over a period of its economic usefulness.
RELATED TERMS ...
Amortization factor
Definition:
The pool Factor implied by the scheduled Amortization assuming no prepayments. ...
Amortization is the practice of writing off the capital expense especially the expense on intangible assets over a particular period of time. It should not be confused with depreciation as depreciation is with regard to tangible assets only.
Targeted Amortization Class - TAC
Investment Dictionary:
Targeted Amortization Class - TAC
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EBITDA /iːˈbɪtdə/ is an acronym for earnings before interest, taxes, depreciation, and amortization. It is a non-GAAP metric that is measured exactly as stated.
Mortgage payments are a common form of amortized loans, and interestingly enough, both the term mortgage and the term amortization find their meaning in the same root word "mort.
Amortization
1: An accounting procedure that gradually decreases the book value of an intangible asset through periodic charges to income. For fixed assets, the term used is depreciation, and for wasting assets, it is depletion.
AMORTIZATION - The process of paying the principal amount of an issue of securities by periodic payments either directly to holders of the securities or to a sinking fund for the benefit of security holders.
Amortization - Similar to depreciation, except amortization relates to intangible assets (patents, trademarks, or goodwill) owned by the firm while depreciation relates to tangible assets.
Amortization - An accounting term indicating the appointment of an incurred expense over the life of an asset.
Amortization : The gradual reduction of debt over a fixed period of time.
amortization: Accounting for expenses or charges as applicable rather than as paid. Includes such practices as depreciation, depletion, write-off of intangibles, prepaid expenses and deferred charges.
Amortization
An asset's reduced value as determined through proration.
Analyst ...
Amortization
The paying off of debt in regular installments over a period of time.
Amortization
Liquidation of a debt through installment payments.
Average life ...
Amortization
Accounting method in which an asset's cost is spread out.
Annual Dividend ...
Amortization: Accounting procedure that companies use to write off intangible rights or assets-such as goodwill, patents, or copyrights-over the period of their existence.
Amortization
The gradual elimination of a liability, in regular payments over a specified period of time. Such payments must be sufficient to cover both principal and interest.
Amortization Schedule Schedule of repayments of the principal amount of a loan.
Annual Limits A statement of the allowable annual movement of interest rates charged to a borrower.
Amortization: An accounting method that allows a company to write-off intangible rights or assets over the period of their existence.
Amortization
Definition: Amortization refers to the gradual reduction of an intangible asset (such as goodwill) on the balance sheet. It can also refer to the reduction of a debt by making regular payments (e.g. a home mortgage). Advice: When an..
Amortization
Amortization is the gradual repayment of a debt over a period of time, such as monthly payments on a mortgage loan or credit card balance.
Amortization: A reduction in a debt or fund by periodic payments covering interest and part of the principal. In municipal bonds, amortization refers to adjusting the cost of a bond for any premium paid.
Amortization
The repayment of a loan by installments.
Amortization factor
The pool factor implied by the scheduled amortization assuming no prepayments.
Amortization: Amortization is an accounting practice that gradually reduces the cost or book value of an asset through periodic charges to income.
Early Amortization
A type of credit enhancement used in certain asset backed securities (ABS).
Planned Amortization Class - PAC tranches use a companion tranche (discussed later) to combat prepayments that occur faster or slower than anticipated.
Amortization/Depreciation
A way of reflecting, in a company's balance sheet, the decline in the value of an asset over a specific period of time due to use.
Amortization: when a company makes an acquisition, the excess paid over the acquired firm's book value is termed goodwill. Until recently, the acquiring company was required to amortize the goodwill over a specified period.
Amortization
Depreciation allowance or loan repayment by installments.
Amortization Schedule ...
Negative Amortization This means that a payment of the stated size is insufficient to repay even the interest on the debt, meaning the total debt actually increases each month instead of falling.
advisory, amortization, analysis, assets, audit, bank, broker, clearing, clearing house, commodity, credit, debt, economics, exchange, federal reserve system, fiscal policy, float, foreign currency, fund, futures, hedge, insurance, interest, ...
Goodwill amortization
Method of depreciation the amount paid for goodwill on the acquisition of a new business. Goodwill is an intangible asset reflecting the market position, brand, know-how and image of a company.
PAC (Planned Amortization Class)-A REMIC class designed to pay investors scheduled payments over a range of constant prepayment speeds.
Planned Amortization Class An indexed amortizing structure with an amortizing rate that is nearly flat over a large range of values for the underlying rate of interest.
partially amortized loan A loan that is partially repaid by amortization during one portion of the term, and partially repaid at the end of the term. participating dividend The dividend paid on participating preferred stock.
Negative Amortization: A gradual increase in the mortgage debt that occurs when the monthly payment is not large enough to cover the entire principal and interest due.
We define cash flow as the total of net income plus non-cash charges (depreciation, amortization, and depletion) minus preferred dividends. It is an indicator of a company's internal cash-generating ability.
Earnings before interest, taxes, depreciation and amortization. Also known as operating cash flow, Ebitda is calculated by subtracting costs of sales and operating expenses from revenues.
In IBM's case, non-GAAP financials exclude "amortization of purchased intangible assets, other acquisition-related charges, and certain retirement-related costs that the company has defined as non-operating.
Examples of these "add-backs" could include depreciation, amortization, auto, boat and airplane expenses, ...
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is a profit ratio that measures a company's profit before deduction of interest, taxes and depreciation.
It is earnings with depreciation and amortization added back. A similar term increasingly used is Funds Available for Distribution (FAD), which is FFO less capital investments in trust property and the amortization of mortgages.
REMIC classes include sequential pay tranches, planned amortization classes (PAC), and targeted amortization classes (TAC). These tranches are generally more stable than some of the tranches outlined below.
In investments, it represents earnings before depreciation amortization and non-cash charges. Sometimes called cash earnings.
Earnings without considering certain expenses such as inventory write downs, severance pay, depreciation and amortization charges, or just about anything else the company feels like excluding to make its earnings look better.
Earnings before interest, taxes, depreciation, and amortization.
Economic Indicator
A key statistic in the overall economy that experts use as a yardstick to predict the performance of the stock market.
Cash flow: The net profits or losses of a business plus noncash expenses such as depreciation, amortization, and depletion.
Common stock: The most basic type of equity security, representing ownership of the corporation.
EBITDA
Earnings before interest, taxes, depreciation and amortization - a financial measurement used in valuing a company.
Earnings Per Share Date
Date of the last earnings announcement.
Cash Flow Per Share From Operations
Derived by adding depreciation, depletion and amortization to the company's net income and dividing this figure by the shares outstanding. more...
The discount rate that equates the present value of the future cash flows to the dirty price, where the cash flows take into account the bond's amortization schedule.
Loan Payments and Amortization
Paying Debts Early versus Making Investments
Percentage Rates APR and APY
Risks of Investments
Return on Equity versus Return on Capital
Rule of 72
Same-Store Sales ...
Return on Capital Employed : Earnings before interest, depreciation and amortization / Net assets
Return on Equity (ROE) : (Profit after tax) / (average common equity) ...
Most exchange-traded options are American style. Amortization: The paying off of debt in regular installments over a period of time; the ratable deduction of certain capitalized expenditures over a specified period of time.
 See also: Interest, Market, Investment, Cash, Share
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