Tag Archives: depreciation
Earnings and Valuation Distortions, Part 2

Earnings and Valuation Distortions, Part 2

Depreciation is a non-cash expense (but still a charge to earnings) that is a proxy for capital assets charges. On the sources and uses of cash schedule, depreciation is an add to arrive at free cash flow, or roughly, cash flow from operations less capital spending. The problem is that a decline in depreciation expense, […]

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