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UUID | 1eb86671-0614-11e4-b7aa-bc764e2038f2 |
The Average Age of an Asset calculator computes the average age in years based on the Accumulated Depreciation (AD) and the Depreciation Expense (D).
INSTRUCTIONS: Choose the preferred units and enter the following:
Average Age of Asset (A): The calculator returns the average age in years. However, this can be automatically converted to other time units via the pull-down menu.
Long-term assets constitute the major productive assets of most companies, the age and composition of these assets should be analyzed. Analysis of the age of the assets can be accomplished fairly easily for those companies that use the straight-line method of depreciation. The average age of an asset can be calculated by taking the accumulated depreciation divided by depreciation expense.
Input Variables:
AD - Accumulated Depreciation
D- Depreciation Expense
Output for Formula:
Returns Average Age of an Asset
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