Capital Expenditure

Written by Jerry Ratzlaff on . Posted in Manufacturing Engineering

Capital expenditure, abbreviated as CapEx, is the total purchase of assets by the company in a given fisical year.

 

capital expenditure Formula

\(\large{ CapEx = PPEC - PPEP + DE  }\)  

Where:

\(\large{ CapEx }\) = capital expenditure

\(\large{ DE }\) = depreciation expense

\(\large{ PPEC }\) = PP&E current year

\(\large{ PPEP }\) = PP&E previous year

\(\large{ PP }\)&\(\large{ E }\) = property, plant, and equipment

 

Tags: Equations for Manufacturing