Property, plant, and equipment (PP&E) are long-term assets vital to business operations and not easily converted into cash. Property, plant, and equipment are tangible assets, meaning they are physical in nature or can be touched. The total value of PP&E can range from very low to extremely high compared to total assets.
Analyst and others will use the PP&E of a company to determine if it is on a sound financial footing and utilizing funds in the most efficient and effective manner.
The process of systematically allocating the costof long-lived (tangible) assets to the periods during which the assets areexpected to provide economic benefits.
An offset to property, plant, and equipment (PPE)reflecting the amount of the cost of PPE that has been allocated to current andprevious accounting periods.