PP&E (Plant, Property & Equipment)

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

In the room

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.

Related terms