Questions tagged [capital-expenditure]

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Don't understand the formula behind forecasting capital expenditure

I'm trying to decode one of prof. Aswath Damodaran's spreadsheet and am stuck at understanding the forecasting of Capital Expenditures. Namely, the forecasting of capital expenditures using a fixed ...
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When we invest in a corporation that has high capital expenditure every year but it is buying warehouses, is that less of a concern?

I think the usual idea is that capital expenditure that goes to $0 value is not usually a good thing. For example, if a company needs to buy 5 new fancy coffee maker for $800 every 5 years, and the ...
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Cash Flow vs Net Profit in Evaluating Capital Evaluation

In Kaplan's CFA Level 1 online course, it has been claimed that after-tax cash flow-based ratios (NPV) are better than profit-based ratios (ROE, EPS, etc...) in terms of evaluating capital allocation ...
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How do I structure accounts to represent capital and depreciation for multiple jurisdictions, keeping equity accurate?

I am required to file taxes for my small (sole proprietorship) business and personal finances in two jurisdictions (Canada and the USA, as it happens). I have capital equipment for my business. Both ...
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Loan to partnership or equity contribution?

I'm trying to understand how to account for the following scenario. Three partners purchase a somewhat dilapidated income property for $600K, each partner contributing one third. It requires ...
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If cash flow is calculated by net income + depreciation without adding capital expenditures, isn't it potentially very inaccurate? [closed]

To invest in companies I need to find out more about cash flow. Sometimes cash flow is defined and calculated by cash flow = net income + depreciation costs - capital expenditures ... (1) ...
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Is it true that we typically consider the operating costs, but for a "long lasting item", we make it a capital expenditure and depreciate it? [closed]

When investing in companies, I have to understand what "capital expenditure" is. It seems that we typically consider how much we take in (sales or revenue) and deduct the costs and arrive at net ...
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Is the cost of buying computers, warehouses, and trucks and fixing the roofs all "capital expenditure"? [closed]

When investing in companies, I had to understand what "capital expenditure" is. Let's say each year, the company has to buy $200,000 worth of new computers for their employees. Is this capital ...
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