04-21-2014, 08:21 PM
Nice reply DW.
Depreciation may be a non-cash cost at the time earnings are reported, but if an entire fleet of trucks is wearing out, that non-cash cost turns into a real one(as they have to replace the trucks), so its good that the accounting takes this into consideration along the way.
I am not expert, but pipelines seems to be allowed excessive depreciation on their assets. DW, can you comment?
I am a fan cash flow from operations and free cash flow, which is the cash flow from operations minus the capital expenditures. Unfortunately all these metrics have hundreds of possible variables, so listening to conference calls and going over company presentations and of course watching dividend growth are all important.
Depreciation may be a non-cash cost at the time earnings are reported, but if an entire fleet of trucks is wearing out, that non-cash cost turns into a real one(as they have to replace the trucks), so its good that the accounting takes this into consideration along the way.
I am not expert, but pipelines seems to be allowed excessive depreciation on their assets. DW, can you comment?
I am a fan cash flow from operations and free cash flow, which is the cash flow from operations minus the capital expenditures. Unfortunately all these metrics have hundreds of possible variables, so listening to conference calls and going over company presentations and of course watching dividend growth are all important.