Percentage of PPE Depreciated (Age)

Financial statements contain information about the original cost of property, plant, and equipment, as well as the depreciation that has been taken since the assets’ acquisition. This permits an assessment of the relative age of a firm’s assets. The calculation involves dividing accumulated depreciation by PPE – gross. PPE – gross is simply the assets’ historical cost. Older assets have larger proportions of PPE – gross that have already been depreciated.

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