Ann: Media release, page-38

@madamswer

"I do, however, perform other diagnostics on the Cash Flows vs the Reported Profits by comparing - over longer time frames - Investment in PP&E (as a proxy for capex) with Depreciation to detect the appropriateness and/or conservativeness of depreciation policies and Interest Expense (P&L) with Interest Paid (Cash Flow Statement) in order to detect any capitalisation of interest that may flatter the bottom-line in the P&L."

I do something similar in terms of capex (in PPE) vs depr. Also, I check depr versus revenue, and depr versus PPE book value, as well as capex (in PPE) versus these same parameters. I also compare depr against capex in PPE less purchase of land & buildings. I guess I'm trying to get a sense of "growth capex" versus "maintenance capex".

I've had to work this stuff out for myself. Kind of groping in the dark, so good to have someone to talk to.