Depreciation & Amortization/PPE

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Depreciation & Amortization/PPE is a ratio that shows what portion of its’ property, plant and equipment company expenses as depreciation and amortization. It is calculated as Depreciation & Amortization divided by PPE.

This ratio is important because it gives an indication of how much company needs to spend to maintain its’ assets base.

Generally, the lower the ratio the better.

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