Income statement
Depreciation & Amortization
Represents the accounting consumption of tangible and intangible assets during the period. It usually does not consume immediate cash, but it signals that part of the asset base is being used up.
Depreciation & Amortization
depreciationAndAmortization · Income statement
- Definition
- Represents the accounting consumption of tangible and intangible assets during the period. It usually does not consume immediate cash, but it signals that part of the asset base is being used up.
- Uses
- Use it to understand how profit is built: sales, direct costs, operating expenses, financing, taxes and adjustments. It is more reliable with stable recognition and less reliable with one-offs, M&A, FX, restructuring or aggressive capitalization policies. Cross-check margins, growth, CFO, FCF and notes.
