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hi CY09,
APTT's depreciation of its PPE has been consistently below its CAPEX. For example in the last 4 years, annual deficit (PPE depreciation value over CAPEX) is ~25mil annually.
So what is the reason for the under investment on paper? A very conservative depreciation policy (ie. depreciate faster) of its network assets? Network assets getting cheaper over time? Or has it been under investing? Are certain assets going to require a sudden replacement which they have to take on with debt or even further conserve more cash?
APTT's depreciation of its PPE has been consistently below its CAPEX. For example in the last 4 years, annual deficit (PPE depreciation value over CAPEX) is ~25mil annually.
So what is the reason for the under investment on paper? A very conservative depreciation policy (ie. depreciate faster) of its network assets? Network assets getting cheaper over time? Or has it been under investing? Are certain assets going to require a sudden replacement which they have to take on with debt or even further conserve more cash?
I am not a certified financial advisor and so nothing of what I say should be construed as financial advice. Please consult a certified financial advisor for advice instead.