# sum of the digits

sum of the digits
sum of the digits ˌsum of the ˈdigits also ˌsum of the ˌyears' ˈdigits noun [singular]
one of the ways of calculating the depreciation (= loss of value over time) of an asset. For example, if an asset has a life of four years, 4+3+2+1= 10, so in the company's accounts the asset is depreciated 40% in the first year, 30% in the second year and so on

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• Sum-of-the-years'-digits depreciation — Method of accelerated depreciation. The New York Times Financial Glossary …   Financial and business terms

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