PP&E (Plant, Property & Equipment)
Also called PP&E · PPE · Plant, Property & Equipment · Fixed Assets
PP&E is a Balance Sheet item that represents tangible assets that a company uses in its operations and are expected to provide economic benefits for over a year.
Some examples:
- Land
- Factories
- Office buildings
- Warehouses
- Vehicles
- Tools
- Machinery
Why PP&E (Plant, Property & Equipment) matters in investment banking interviews
PP&E connects CapEx and D&A, which makes it a hub in three-statement questions. You buy PP&E through investing cash flow, then depreciate it through the income statement over its useful life.