## Depreciation vs Amortization: Why Investors Need to Know?
If you are a serious investor who reads financial statements regularly, these two terms will keep appearing: **Depreciation** (Depreciation) and **Amortization** (Amortization). They are behind the numbers of a company's profit and revenue. Once you understand them, analyzing EBIT and EBITDA becomes much easier.
### What is depreciation, really?
Depreciation is not a cash loss but a way to allocate the cost of tangible assets (Tangible Assets) over their useful life. Accountants use this method to reflect that machinery, buildings, o
View OriginalIf you are a serious investor who reads financial statements regularly, these two terms will keep appearing: **Depreciation** (Depreciation) and **Amortization** (Amortization). They are behind the numbers of a company's profit and revenue. Once you understand them, analyzing EBIT and EBITDA becomes much easier.
### What is depreciation, really?
Depreciation is not a cash loss but a way to allocate the cost of tangible assets (Tangible Assets) over their useful life. Accountants use this method to reflect that machinery, buildings, o