By adding back depreciation, aren't you assuming the assets will never have to be replaced? If the assets are depreciated over a shorter period than their expected life, an adjustment should be made accordingly. But adding back all depreciation is not reflecting reality. If I am counting only the maintenance expenses on my car, I am fooling myself.
On EPS and MLPs [View article]
If the assets are depreciated over a shorter period than their expected life, an adjustment should be made accordingly.
But adding back all depreciation is not reflecting reality.
If I am counting only the maintenance expenses on my car, I am fooling myself.