Capital Expenditure

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Capital expenditure, abbreviated as CapEx, is the amount of money that needs to be spent on a project to see it from design through completion.


capital expenditure Formula

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


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Tags: Manufacturing Equations