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?
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