Our Financial Analysis Success Kit is Ready!

Click to take a closer look at the Financial Analysis Success Kit Click the button to learn more about the Financial Analysis Success Kit Click the button to learn more about the financial analysis success it

Why you should take a look at the Financial Analysis Success Kit:

We've combined all our highly popular financial analysis tools into one mega-financial-analysis-kit that will save you hundreds of dollars if purchased separately. The kit contains 9 files packed with the most important financial ratio analysis tools you can find to help rocket your way to mastering financial analysis. The kit includes:
  1. The eBook "Learn Ratio Analysis In Minutes"

  2. The Learn Financial Ratio Analysis Excel Spreadsheet (2 versions!)

  3. A BONUS...Our eBook of "Key Financial Statement Terms"

  4. Another HUGE BONUS...Five-Part Financial Ratio Cheat Sheet Series

The result? You get all these professionally created tools for a great low price.

Learn more on our product page:

Take a Look

Quick Definition

Considered an expense, a cost that is spread out among company reporting periods from the purchase of a large asset.

[sc:kit03 ]

Explanation of Depreciation and Amortization

Depreciation and amortization is a combined expense, typically reported on the income statement. A company can record this if they purchase large assets that are expected to last many years. Amortization is also added to depreciation, as loan payments are also periodic.

Importance of Depreciation and Amortization

In terms of financial analysis, Depreciation and Amortization is considered an expense. Depending on the asset and what accounting rules the company may be operating under, an asset can be depreciated over multiple reporting periods.

Amortization of a loan also happens over many reporting periods and is the reason they are often included with depreciation. Careful investors may want to identify the amounts of each, as these values are often explained in further detail in the accompanying notes to the financial statements.