margin depreciation

USAGE SUMMARY

The phrase "margin depreciation" is correct and usable in written English.
It can be used in financial contexts to refer to the decrease in value of an asset or investment relative to its margin or equity. Example: "The company faced significant margin depreciation due to the fluctuating market conditions, impacting its overall profitability."

✓ Grammatically correct

Formal & Business

News & Media

Science

Human-verified examples from authoritative sources

Exact Expressions

1 human-written examples

The direction for all remaining line items (gross margin, depreciation, tax rate, and capital spending) remains the same.

Forbes

Human-verified similar examples from authoritative sources

Similar Expressions

59 human-written examples

Scaling up the procedure should make it even less expensive, he said, but he added, "Our costs do not include any profit margin, facility depreciation costs or other clinical care costs, and other research costs".

The New York Times - Health

And Praxair's operating margin after depreciation stood last year at 16.8% versus Air Products & Chemical's 12.1% and BOC Group's 11.6%.

Forbes

In two years Thomasville's operating margin (net before depreciation, interest and taxes) has leapt to 11% from 4%.

Forbes

In its test-preparation business it enjoys an operating margin (net before depreciation, interest and taxes) of 36%.

Forbes

In 1998, the last year under the previous management, AMI had a 32.8% operating margin (net before depreciation, interest and taxes, as a fraction of sales).

Forbes

The paper moved to New York in 2000, pushed circulation to 300,000 and enjoyed an operating margin (net before depreciation, interest and taxes) of 10% on revenue of $5 million.

Forbes

The crane divisions operating margin (net before depreciation, interest and taxes, as a percent of sales) is 16%, compared to rival Terexs 11.5%.

Forbes

In the January 1999 fiscal year the chain's operating cash flow margin (net before depreciation, interest and taxes, as a percent of sales) reached 8.6%, a third higher than it was when he took over and well above the industry norm.

Forbes

So how will Bennink make good on his promise to boost baby-food sales by at least 5% per year over the next three years, with an eventual operating margin (net before depreciation, interest and taxes) of 20%?

Forbes

Thus it is that in 2000 BASF reported a 15% operating margin (net before depreciation, interest and taxes and nonrecurring items, as a percent of sales) to DuPont's 25%.

Forbes

Expert writing Tips

Best practice

When discussing financial performance, use "margin depreciation" to specifically highlight the decline in asset value relative to its margin or equity.

Common error

Avoid using "margin depreciation" interchangeably with other types of depreciation, like asset depreciation. Ensure you're referring to the decline in value relative to a margin or equity, not the general decrease in an asset's value.

Linguistic Context

The phrase "margin depreciation" functions as a noun phrase typically used in financial contexts. Ludwig indicates it describes the reduction in an asset's value relative to its margin or equity. It acts as a subject or object within a sentence to denote this specific financial phenomenon.

Expression frequency: Rare

Frequent in

News & Media

33%

Formal & Business

33%

Science

33%

Less common in

Academia

0%

Encyclopedias

0%

Wiki

0%

Ludwig's WRAP-UP

The phrase "margin depreciation" describes the decline in value of an asset or investment relative to its margin or equity. As Ludwig AI points out, its grammatical status is correct, although its usage is relatively rare. Predominantly found in financial news and formal business contexts, it indicates a reduction in financial performance. When discussing financial matters, it's crucial to differentiate "margin depreciation" from other depreciation types to avoid confusion. Alternatives like "erosion of profit margins" or "decline in profitability" might be suitable substitutes depending on the specific context.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

falling margins

Simple and direct way to state that margins are decreasing.

margin compression

Emphasizes the squeezing or narrowing of the margin.

erosion of profit margins

Focuses on the gradual decrease of profit margins, emphasizing the 'erosion' aspect.

profit margin contraction

Highlights the shrinking or contraction of the profit margin.

decline in profitability

More general term indicating a decrease in the ability to generate profit.

reduced profitability

A straightforward way to express lower profitability.

waning profitability

Emphasizes the gradual fading or weakening of profitability.

asset devaluation

Focuses specifically on the reduction in the value of assets.

decreasing returns

Refers to the economic principle of diminishing returns on investment.

diminishing returns on equity

Highlights the decline in returns specifically related to equity investments.

FAQs

How to use "margin depreciation" in a sentence?

You can use "margin depreciation" to describe a decrease in the value of an asset or investment relative to its margin. For example, "The company experienced significant "margin depreciation" due to market volatility".

What can I say instead of "margin depreciation"?

You can use alternatives like "erosion of profit margins", "decline in profitability", or "margin compression" depending on the context.

What's the difference between "margin depreciation" and "asset devaluation"?

"Margin depreciation" refers specifically to the decrease in value relative to a margin or equity, while "asset devaluation" is a broader term indicating the reduction in the value of any asset.

In what contexts is "margin depreciation" most appropriate?

"Margin depreciation" is most appropriate in financial discussions where you need to emphasize the decline in asset value specifically in relation to its margin or equity position. It's common in reports, analyses, and strategic planning.