what pp e value means
investment analysts and accountants use pp e to determine if a company is financially sound a company investing in pp e is a good sign for investors purchases often signal that management expects long term profitability of its company investment in pp e is also called a capital investment industries or businesses that require extensive fixed assets like pp e are described as capital intensive pp e may be liquidated when a company is experiencing financial difficulties selling property plant and equipment to fund business operations may signal financial trouble companies can also borrow from their pp e as a floating lien meaning the equipment can be used as collateral for a loan 