Premium
Do You Use Your Depreciation Funds Wisely?
Author(s) -
Jordan Jeffrey L.
Publication year - 1995
Publication title -
opflow
Language(s) - English
Resource type - Journals
eISSN - 1551-8701
pISSN - 0149-8029
DOI - 10.1002/j.1551-8701.1995.tb01279.x
Subject(s) - depreciation (economics) , consumption of fixed capital , net income , revenue , business , earnings before interest, taxes, depreciation, and amortization , finance , net asset value , operating expense , economics , monetary economics , earnings , microeconomics , profit (economics) , financial capital , capital formation
If you are operating with negative net income and are using your depreciation funds to meet expenses, take a serious look at your rate structure and prices. The revenues you are generating are not covering the full cost of providing water service. Make sure that: your net income and return on assets are positive; your rates are sufficient; and you are using your depreciation funds wisely.