## What Does Depreciation Mean? Understanding Asset Write-Down Systems Correctly
When talking about **depreciation**, it refers to the decrease in value of assets over time. Many people might think it’s just a number on financial statements, but it is a crucial process that affects net profit and company valuation. Today, we will delve into what depreciation is, how it relates to EBIT and EBITDA, and why businesses need to understand it deeply.
### The Relationship Between Depreciation, EBIT, and EBITDA
**Depreciation** is an expense recorded by accountants when the value of fixed assets decre
View OriginalWhen talking about **depreciation**, it refers to the decrease in value of assets over time. Many people might think it’s just a number on financial statements, but it is a crucial process that affects net profit and company valuation. Today, we will delve into what depreciation is, how it relates to EBIT and EBITDA, and why businesses need to understand it deeply.
### The Relationship Between Depreciation, EBIT, and EBITDA
**Depreciation** is an expense recorded by accountants when the value of fixed assets decre