How much do depreciation assumptions change Acme United Corp's earnings?
Gross property and equipment, depreciation and capital spending, with an alternative useful-life calculator. Cash spending is kept separate.
Depreciation against the asset base
Gross property and equipment of $71.0M against $6.3M of depreciation and amortization implies an average life of about 11.2 years (gross assets ÷ annual charge). The charge includes amortization where the company reports them together.
| Fiscal year | Gross PP&E | Net PP&E | Depreciation & amortization | Implied life (yrs) | Capital expenditure (cash) |
|---|---|---|---|---|---|
| 2020 | $39.2M | $20.2M | $3.8M | 10.2 | $2.6M |
| 2021 | $45.0M | $24.0M | $4.0M | 11.1 | $6.4M |
| 2022 | $50.1M | $26.4M | $4.6M | 10.9 | $4.3M |
| 2023 | $54.6M | $28.0M | $5.0M | 10.9 | $4.7M |
| 2024 | $60.6M | $31.7M | $6.1M | 10.0 | $7.1M |
| 2025 | $71.0M | $38.5M | $6.3M | 11.2 | $10.7M |
10-K filed 2026-03-11 · DepreciationAndAmortization
Compare an alternative useful life
A 12-year average life gives an annual charge of $5.9M instead of $6.3M. After tax at 21%, net income would be higher by $339,968. Cash spending ($10.7M) is unchanged.
Straight-line on gross assets, no salvage value; land and construction in progress are not separated. Treat as an order-of-magnitude comparison.