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We describe the Depreciation, Amortization and EBIT line items, and dive into the difference between depreciation and amortization.
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Think about what depreciation is.
0:00
It's an expense that shows
the reduction in value of an asset.
0:02
There are tons of articles, and
papers, and polices about depreciation.
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But for us, just know, it's an expense
related to an asset reducing in value.
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A company will likely depreciate different
items over different time frames.
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Maybe a computer is depreciated
over three years, but
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a piece of factory equipment
is depreciated over ten.
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It depends on the situation.
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