Write-Down

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Dictionary Says

Definition of 'Write-Down'

Reducing the book value of an asset because it is overvalued compared to the market value. A write-down typically occurs on a company's financial statement, when the carrying value of the asset can no longer be justified as fair value and the likelihood of receiving the cost (book value) is questionable at best.
Investopedia Says

Investopedia explains 'Write-Down'

Write-downs are typically reflected in a company's income statement as an above-the-line expense, thereby reducing net income. This, however, is not always a bad thing, since a write-down is simply a paper loss, which, since it lowers net income, will reduce a firm's tax burden. Companies will usually attempt to time large write-downs together, so they can "take a bath" in one reporting period with the hope of quickly recovering in the next period.
Search results for

'Write-Down'

  • Regions Financial Hit By Goodwill Write-Down

    http://stocks.investopedia.com/stock-analysis/2009/Regions-Financial-Hit-By-Goodwill-Write-Down-RF0126.aspx
    ... Article; Comments (0). Regions Financial Hit By Goodwill
    Write-Down. Posted: Jan 26, 2009 13:50 PM by Eric Fox. ...

  • Natural Gas Write Offs

    http://stocks.investopedia.com/stock-analysis/2012/Natural-Gas-Write-Offs-APC-COP-PXD-CRK0209.aspx
    ... Article: APC, COP, CRK, PXD. Many exploration and production companies have taken
    impairment charges during the most recent quarter as they write down the value ...

  • When Goodwill Becomes Badwill

    http://stocks.investopedia.com/stock-analysis/2009/When-Goodwill-Becomes-Badwill-DKS-FLEX-ANN-JNY0311.aspx
    ... The recent recession and decline in equity markets is forcing many companies to
    write down the value of their goodwill, an esoteric asset account that is very ...

  • How Return On Equity Can Help You Find Profitable Stocks

    http://www.investopedia.com/articles/fundamental/03/100103.asp
    ... If, for instance, a company takes a large write-down, the reduction in income (ROE's
    numerator) occurs only in the year that the expense is charged; the write ...

  • Earnings Sustainability: The Key To Your Investing Future

    http://www.investopedia.com/articles/fundamental-analysis/09/sustainable-company-earnings.asp
    ... For example, a company that has to perform a significant write down on their inventory
    will continue to be affected by the write down, through a lower cost of ...

  • Common Clues Of Financial Statement Manipulation

    http://www.investopedia.com/articles/07/statementmanipulation.asp
    ... The danger comes when companies make an excessive write down, such as claiming unsold
    inventory as a loss when it is probable that it will be sold in the future ...

  • Energy Companies Reporting Net Losses

    http://stocks.investopedia.com/stock-analysis/2011/Energy-Companies-Reporting-Net-Losses-PQ-PVA-CXPO-GDP0905.aspx
    ... second quarter of 2011. This loss was caused by a $12.9 million ceiling test
    write-down during the quarter. The Securities and Exchange ...

  • Still A Lot Of Questions At LDK Solar

    http://stocks.investopedia.com/stock-analysis/2011/Still-A-Lot-Of-Questions-At-LDK-Solar-LDK-FSLR-TSL-YGE-SOL-STP-GE-SI0901.aspx
    ... Profitability was also hurt by a large inventory write-down ($53 million)
    tied to that drop in solar wafer prices. With the write ...

  • 4 Steps To Creating A Better Investment Strategy

    http://www.investopedia.com/articles/trading/10/creating-a-better-investment-strategy.asp
    ... investments that, when looked at as a whole, have no overall theme or objective.
    Can you write down your investment strategy as a process? ...

  • Natural Gas Impairment Charges Pile Up

    http://stocks.investopedia.com/stock-analysis/2012/Natural-Gas-Impairment-Charges-Pile-Up-MHR-BRY-BBG-GDP-SM0302.aspx
    ... on natural gas properties as operators write down the value of these fields. The
    lower value is due to the extended period of low natural gas prices. ...

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