“My Index Deter” demonstrates the depreciation stage of assets on a scale of 0 to 1 and the closer to zero means the end of useful life and the need for reinvestment or replacement of assets (CAPEX).
The relationship between My Index Deterioration and the historical acquisition value or current replacement value defines the value of the investment in CAPEX in the coming years.
The relationship between My Index Deterioration and the market value helps in the current valuation of assets, when analyzing the possible sale to assist in investments in CAPEX (value prior to Salvage Value or residual value of assets).
NOTE: indices between 0.1 and 0.3 represent assets at the end of their useful lives and with an immediate or imminent need for reinvestment in CAPEX.
Mynarski helps you plan CAPEX!