Formula
to calculate equipment replacement ratio:
Equipment
Replacement Ratio = change in undepreciated assets /
depreciation.
Equipment
replacement ratio definition and explanation:
The equipment
replacement
ratio indicates whether the company is spending
sufficient funds on replacing assets.
The equipment replacement ratio is included in the financial
statement ratio analysis spreadsheets highlighted in the
left column, which provide formulas, definitions,
calculation, charts and explanations of each ratio.
The equipment replacement ratio is listed in our discretionary
cost ratios.
Spreadsheets to
calculate ratios (includes formulas, definitions,
explanations and charts):
See list
of ratios , or the financial statement ratio
analysis spreadsheets which are not highlighted in the
left column, to see which other ratios our spreadsheets
calculate, define and explain.
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