Capital Expenditure
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 |
\(\large{ CapEx = PPEC - PPEP + DE }\) |
Symbol |
\(\large{ CapEx }\) = 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: Manufacturing