1. What is Capex?

Capex (Capital Expenditure) represents the cash flow from investing activities, specifically purchases of fixed assets. It's a key metric for understanding a company's investments in long-term assets.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Capex \) — Capital expenditure (currency)
• \( Cash\ Flow\ From\ Investing \) — Total cash spent on investing activities (currency)

Explanation: Capex is directly taken from the cash flow statement under investing activities, specifically the line item for purchases of property, plant, and equipment (PP&E).

3. Importance of Capex Calculation

Details: Capex is crucial for understanding a company's growth strategy, maintenance requirements, and capital allocation. It impacts cash flow, depreciation, and future earning potential.

4. Using the Calculator

Tips: Enter the cash flow from investing activities (typically negative as it represents cash outflow). The calculator will return the Capex value in the same currency.

5. Frequently Asked Questions (FAQ)

Q1: Is Capex always equal to cash flow from investing?
A: While Capex is the main component, cash flow from investing may include other items like acquisitions or sales of assets. Look specifically for PP&E purchases.

Q2: Why is Capex important for investors?
A: It shows how much a company is reinvesting in its business, which can indicate growth potential or maintenance needs.

Q3: What's the difference between Capex and Opex?
A: Capex (capital expenditures) are long-term investments in assets, while Opex (operating expenses) are day-to-day costs of running the business.

Q4: How does Capex affect financial statements?
A: Capex appears on the cash flow statement immediately and creates assets on the balance sheet that depreciate over time.

Q5: Can Capex be positive?
A: Typically no, as it represents cash outflow. A positive number might indicate asset sales rather than purchases.