Meaning & use

accretive

adjective·Advancedformalfinancetechnical

Last updated

UK/əˈkriːtɪv/
US/əˈkriːtɪv/

Meanings

  1. adjectivenot comparableformal

    Causing or producing gradual growth or increase through repeated additions.

    Grammar: Often used before a noun or after be; prefer highly accretive over more accretive in careful use.

    Patterns

    • accretive process
    • highly accretive
    • be accretive to something

    The historian described language change as an accretive process.

    Good habits have an accretive effect that appears only after months.

    The reforms were accretive to public trust rather than instantly popular.

  2. adjectivenot comparablefinancebusiness

    Describing a deal or action that increases a company's earnings, cash flow, or value per share.

    Grammar: Common before deal, acquisition, merger, or after be; usually followed by to for the measure increased.

    Patterns

    • accretive acquisition
    • accretive to earnings
    • highly accretive deal

    The board rejected the plan because it was not accretive to earnings.

    An accretive merger can still carry serious integration risks.

    Investors asked whether the purchase would be accretive in the first year.

  3. adjectivenot comparabletechnicalspecialist

    Relating to the buildup of material in layers, especially in geology or planetary science.

    Grammar: Specialist modifier for processes, margins, or growth where material is added gradually.

    Patterns

    • accretive process
    • accretive growth
    • accretive margin

    An accretive margin forms where sediment is added faster than it is removed.

    The model explains the planet's accretive growth from dust and ice.

    Researchers measured accretive buildup on the volcanic slope.

Common combinations

accretive acquisition
The firm sought an accretive acquisition that would not strain its debt load.
accretive to earnings
Analysts said the sale of the division would not be accretive to earnings.
highly accretive
A highly accretive deal may still reduce flexibility for future investment.
accretive process
Coral growth is an accretive process built from tiny repeated additions.

Synonyms and how they differ

cumulative
Cumulative emphasizes a total effect from repeated additions; accretive more often implies steady buildup or a positive financial effect.
additive
Additive simply means something is added; accretive suggests the additions create growth over time.
value-enhancing
Value-enhancing is a plainer finance phrase; accretive specifically points to added value or earnings.

Opposites

dilutiveerosivedepletive

Word family

accrete verb
To grow gradually by added layers or amounts.
accretion noun
Added growth, or the added material itself.

Commonly confused: accretive or accrual? accretive or dilutive?

accretive vs accrual

Accrual is an accounting amount or method; accretive describes something that produces gradual growth or added value.

accretive vs dilutive

In finance, dilutive is the direct opposite: it reduces earnings or value per share.

Practice

Analysts called the merger ______ because it raised earnings per share.

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