I will need your ideas again. As I have already introduced myself before - I am a Sales Manager and my team consists of 16 professionals.
In my department we have no clear decision model for capital expenditure (CapEx) purchases. Are there any good practices to be aplied? Some matrices or models?
Hello again, Kenneth:
How to Calculate CapEx
If you have access to a company’s cash flow statement, then no calculation is necessary and you can simply see the capital expenditures that were made in the [removed] section.
If you don’t have access to the cash flow statement, it’s possible to calculate the net capital expenditure if depreciation is broken out on the income statement (which most, but not all, companies do).
To calculate capital expenditures, follow these steps:
The CapEx formula from the income statement and balance sheet is:
CapEx = PP&E (current period) – PP&E (prior period) + Depreciation (current period)
I hope this helps, Kenneth.