Accretive

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DEFINITION of 'Accretive'

The process of accretion, which is the growth or increase by gradual addition, in finance and general nomenclature. An acquisition is considered accretive if it adds to earnings per share.

BREAKING DOWN 'Accretive'

In corporate finance, accretive acquisitions of assets or businesses will add more value than the cost of the acquisition, either immediately or over time. In fixed-income investments, the term refers to the increase in value attributable to interest accrued but not paid (discounted bonds, for example, earn interest through accretion until maturity).

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