Finesentence mobile logo
Sign in Login / Register

Depreciate: meaning, definitions and examples

💸
Add to dictionary

depreciate

 

[dɪˈpriːʃieɪt ]

Definition

Context #1 | Verb

in finance

To diminish in value over time. Depreciation can occur for various reasons, such as wear and tear, obsolescence, or unfavorable market conditions. It is often used in the context of assets like vehicles, machinery, or real estate.

Synonyms

devalue, diminish, weaken.

Which Synonym Should You Choose?

arrow down
Word Description / Examples
depreciate

Used when referring to a decrease in the value of an asset over time, often in financial or economic contexts.

  • The company's equipment depreciated by 10% last year.
  • Real estate can also depreciate depending on market conditions.
devalue

Commonly used in economic contexts, particularly in relation to currency. It indicates a deliberate reduction in value by a governing body or a natural loss in value over time.

  • The government decided to devalue the currency to boost exports.
  • Inflation can devalue your savings over time.
diminish

Used in both formal and informal contexts to indicate a reduction in size, importance, or intensity. It is not limited to financial contexts.

  • His influence in the company has diminished since the new CEO was appointed.
  • The pain should diminish over time.
weaken

Often used to describe something losing strength or potency, applicable in various contexts including health, physical strength, and structural integrity.

  • The bridge weakened over the years due to poor maintenance.
  • His arguments weakened her resolve to move forward.

Examples of usage

  • The value of the car depreciated significantly after the accident.
  • This equipment is starting to depreciate due to its age.
  • If the property market crashes, your house could depreciate in value.

Interesting Facts

Etymology

  • The term originates from the Latin word 'depretiatus,' meaning 'to lower the value of.'
  • It entered the English language in the early 19th century with a financial context.
  • The 'de-' prefix implies a reduction, while 'preciate' comes from 'price,' indicating a decrease in price.

Economics

  • Depreciation is a key concept in accounting, representing asset value reduction over time due to wear and tear.
  • In finance, businesses use depreciation to allocate the cost of tangible assets over their useful lives.
  • Tax rules often allow businesses to deduct depreciation on their tax returns, affecting overall financial strategy.

Cultural Impact

  • In contemporary digital culture, the rapid pace of tech advancements often leads to products depreciating quickly, impacting consumer behavior.
  • Cultural perceptions of value can fluctuate, with some vintage items appreciating, while newer versions depreciate.
  • Depreciation is a common theme in art and literature, exploring themes of loss and the passage of time.

Psychology

  • Understanding depreciation can evoke feelings of nostalgia, as people reflect on once-valued items that are no longer cherished.
  • This concept can be linked to broader psychological themes of impermanence and acceptance of change in life.
  • Consumer decisions are sometimes driven by perceived depreciation; people may buy newer products to avoid owning something outdated.

Technology

  • In the tech industry, products often depreciate quickly due to rapid advancements and releases of newer models.
  • Software also experiences 'depreciation' when older versions become less supported, affecting user choices.
  • Digital assets, like cryptocurrencies, can experience significant depreciation, affecting investor psychology and market trends.

Translations

Translations of the word "depreciate" in other languages:

🇵🇹 depreciar

🇮🇳 मूल्य गिरना

🇩🇪 abwerten

🇮🇩 menyusutkan

🇺🇦 знецінювати

🇵🇱 deprecjonować

🇯🇵 価値が下がる

🇫🇷 déprécier

🇪🇸 depreciar

🇹🇷 değer kaybetmek

🇰🇷 가치가 떨어지다

🇸🇦 ينخفض

🇨🇿 znehodnotit

🇸🇰 znehodnotiť

🇨🇳 贬值

🇸🇮 deprecirati

🇮🇸 rýra gildi

🇰🇿 құнсыздану

🇬🇪 დაბალი ფასი

🇦🇿 qiymətdən düşmək

🇲🇽 depreciar

Word Frequency Rank

Positioned at #20,622, this word is part of extensive vocabulary. It's relatively rare in general usage but may be important in specific fields or formal writing.