Answer:
PP&E (Property, Plant and Equipment)
Fixed, tangible assets
Written by CFI Team
Updated May 6, 2022
What is PP&E (Property, Plant, and Equipment)?
Property, Plant, and Equipment (PP&E) is a non-current, tangible capital asset shown on the balance sheet of a business and is used to generate revenues and profits. PP&E plays a key part in the financial planning and analysis of a company’s operations and future expenditures, especially with regards to capital expenditures.
PP&E on a Balance Sheet
The PP&E account is often denoted as net of accumulated depreciation. This means that if a company does not purchase additional new equipment (therefore, its capital expenditures are zero), then Net PP&E should slowly decrease in value every year due to depreciation. This can be better determined with a depreciation schedule.