In finance and business, the term “accretive” is commonly used to describe an event or transaction that is expected to increase earnings, cash flow, or some other financial metric per share or on a per-unit basis. An accretive event generally has a positive impact on the financial metrics being considered. The opposite of accretive is “dilutive,” which refers to a transaction that is expected to decrease earnings or other financial metrics per share.

Here are some contexts in which the term “accretive” is frequently used:

1. **Accretive Earnings:**
– An acquisition or investment is considered accretive if it is expected to contribute positively to the earnings per share (EPS) of the acquiring company. In this context, the idea is that the combined entity will generate higher overall earnings than the sum of the individual entities.

2. **Accretive Transaction:**
– Any financial transaction, such as mergers and acquisitions, share buybacks, or debt refinancing, can be described as accretive if it is expected to result in an increase in shareholder value or financial metrics.

3. **Accretive Dividend:**
– When a company increases its dividend payout per share, it is considered accretive to shareholders. This means that the dividend per share is increased, resulting in a higher yield for investors.

4. **Accretive Investment:**
– An investment that is expected to generate a return higher than the cost of capital is considered accretive. This applies to investments in projects, assets, or securities.

5. **Accretive Financing:**
– When a company raises capital through financing and the expected return on the investment funded by the capital exceeds the cost of the financing, it is considered accretive financing.

In summary, the term “accretive” is used to convey the positive impact of a financial event or transaction on various financial metrics. It indicates that the event is expected to enhance the financial position or performance of the entity involved. Investors and analysts often pay close attention to whether transactions are accretive or dilutive when assessing their potential impact on shareholder value.