Depreciation: the meaning
The cost of machines, vehicles and buildings, spread over the years they last.
A van of 40,000 euros that lasts five years gives 8,000 euros of depreciation a year.
How to read it
Not a cash outflow that year, but a real cost. High depreciation points to a lot of investment.
On Nummo you find this figure in the Figures tab of every company that filed annual accounts, over the years. In the tables, a small card gives this explanation in short.
How to calculate it
item 630
The item numbers follow the official format of Belgian annual accounts, which builds on the European Accounting Directive.
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