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| Name | Capital Expenditure Formula (Examples) | How to Calculate CAPEX? |
| Video Uploader | Video From WallStreetMojo |
| Upload Date | This Video Uploaded At 09-06-2020 07:47:48 |
| Video Discription | In this video on Capital Expenditure Formula, here we discuss how to calculate CAPEX along with its formula and practical example. ๐๐ก๐๐ญ ๐ข๐ฌ ๐๐๐ฉ๐ข๐ญ๐๐ฅ ๐๐ฑ๐ฉ๐๐ง๐๐ข๐ญ๐ฎ๐ซ๐ (๐๐๐๐๐) ๐ ๐จ๐ซ๐ฆ๐ฎ๐ฅ๐? ---------------------------------------------------------------------------------- Capital Expenditure (Capex) Formula measures the company's overall purchase of assets in the fiscal year and can be easily measured by adding a net increase in the PP&E value during the year to the depreciation cost for that year. ๐๐๐ฉ๐ข๐ญ๐๐ฅ ๐๐ฑ๐ฉ๐๐ง๐๐ข๐ญ๐ฎ๐ซ๐ ๐ ๐จ๐ซ๐ฆ๐ฎ๐ฅ๐ ----------------------------------------------------- CAPEX Formula = Net Increase in PP&E + Depreciation Expense ๐๐ฑ๐๐ฆ๐ฉ๐ฅ๐ ๐จ๐ ๐๐๐ฉ๐ข๐ญ๐๐ฅ ๐๐ฑ๐ฉ๐๐ง๐๐ข๐ญ๐ฎ๐ซ๐ (๐๐๐๐๐) ๐ ๐จ๐ซ๐ฆ๐ฎ๐ฅ๐ ---------------------------------------------------------------------------------------- Let us take the example of a company EFG Ltd and calculate capital expenditure in 2017 based on the following given data - Depreciation Expense is $20,500 in the income statement PP&E value at the end of 2017 is $48,500 in the balance sheet PP&E value at the beginning of 2017 is $42,000 in the balance sheet Firstly we need to calculate Net increase in PP&E using below formula, Net increase in PP&E = PP&E value at the end of 2017 โ PP&E value at the beginning of 2017 =48500-42000 =6500 Now we will calculate capital expenditure for the year 2017 by using below formula - Capital Expenditure (capex) Formula = Net increase in PP&E + Depreciation Expense = 6500+20500 =27000 Therefore, Capital Expenditure incurred during 2017 is $27,000. To know more about the ๐๐๐ฉ๐ข๐ญ๐๐ฅ ๐๐ฑ๐ฉ๐๐ง๐๐ข๐ญ๐ฎ๐ซ๐ (๐๐๐๐๐) ๐ ๐จ๐ซ๐ฆ๐ฎ๐ฅ๐ , you can go to this ๐ฅ๐ข๐ง๐ค ๐ก๐๐ซ๐:- https://www.wallstreetmojo.com/capital-expenditure-formula-capex/ Subscribe to our channel to get new updated videos. Click the button above to subscribe or click on the link below to subscribe - https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1 |
| Category | Education |
| Tags | capital expenditure formula (capex) | capital expenditure formula | capital expenditure calculation | capital expenditure example | capex calculation | examples of capex |
