ACCOUNTING GLOSSARY
D&A
Depreciation and Amortization
Non-cash expenses allocating tangible and intangible asset costs over time.
What does D&A mean?
Non-cash expenses allocating tangible and intangible asset costs over time. Professionals may calculate, document or apply this concept differently depending on the transaction, accounting method, lender policy and governing documents. Borrowers should confirm the precise definition used in any term sheet or agreement.
D&A in context
EBITDA adds back D&A when measuring earnings before those charges.
Why it matters in financing
D&A can influence how a lender, investor or advisor evaluates risk, pricing, structure, repayment capacity or transaction economics. It should be considered together with the complete financial picture rather than used alone.
Related accounting terms
Educational information only. This definition is general, may not match a particular lender or contract, and is not financial, accounting, tax or legal advice.