If a firm is putting depreciation as separate line item for SG&A and Cost of revenue, how would you project it?
I generally do Depreciation as % of PP&E but here I am a little confused. Depreciation under cost of revenue historically seems to be consisitently around 2.3% of net revenue but depreciation for SG&A shows a variation of 31bps over 8 quarters(0.47% to 0.78%) if taken as % of revenue.
I was wondering if I should just model Depreciation under revenue as % of revenue and the other one as % of PP&E or should I just do both as % of revenue (or both as % of PP&E). Any advice or suggestions?
Dolores repellendus et delectus velit. Adipisci ullam et consectetur id eum. Cum quae rerum consequuntur iure. Tenetur expedita nulla totam.
Vel vitae omnis atque soluta ut aut aut. Eveniet dolor fugiat neque libero sequi commodi saepe. Possimus rerum dolorem unde et. Aliquid saepe laudantium saepe sunt.
Velit at voluptas et enim. Ipsam quas velit ut eum aut deserunt. In minima veniam blanditiis sit.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...