Depreciation gets little respect nowadays. We all know how much investors have come to dread accounting accruals, so nowadays, many who want to examine capital charges lean toward the real thing; the actual capital expenditure number which is deemed to be superior to the so-called fictional depreciation figure. This is unfortunate. Preferring depreciation over capex will definitely cost you intellectual brownie points, but it might contribute to your dollars-and-cents portfolio performance. FULL ARTICLE.
