If Depreciation is MUCH higher than PP&E does it mean that the company will be incurring a big CAPEX spending very soon?


I was looking at the COST PRICE of the assets vs the ACCUMULATED DEPRECIATION and found that it is almost fully depreciated.

Looking at this, does it mean that the company will soon be having to replace their assets and will be spending a huge amount of CAPEX soon which will be affecting their FREE CASH FLOW.

The company is looking attractive now as the FCF will cover the purchase price of the company in around 5 years assuming no growth in FCF.

Hope someone can advice.

https://ibb.co/ckzMXpF

https://ibb.co/QJrC0HL


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