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Depreciation

Also known as depreciate

Spreading the cost of something expensive across the years you use it, instead of counting it all in the month you bought it.

Example

A ₹3L machine expected to last five years is shown as ₹60,000 of cost each year.

Related terms

CapEx / OpEx
CapEx is money spent on things you keep for years, like machines or laptops. OpEx is the day-to-day running cost, like salaries and rent.
EBITDA
किसी कंपनी के मुख्य परिचालन लाभ (operating profit) को मापने का एक तरीका। इसमें ब्याज (interest), टैक्स (taxes), मूल्यह्रास (depreciation) और Amortization को शामिल नहीं किया जाता है। यह दिखाता है कि कंपनी का मुख्य व्यवसाय कैसा चल रहा है।
Balance Sheet
A snapshot of what the business owns and owes on a single date. What you own minus what you owe is what the business is worth on paper.

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