Litigation Speaks

Business Valuation: Depreciation Expense in Excess of Capital Expenditures

Episode Summary

Depreciation expense cannot be greater that the cost of an asset.... if it is there is too much depreciation expense which will lower the value of the company. For this episode I will be discussing the fallacy when doing a business valuation the capital expenditures and depreciation expense should not be exceed the capital expenditures in the terminal year.