1. What is Unfinanced Capex?

Unfinanced Capex represents the portion of capital expenditures that a company must cover from its own resources (like cash reserves or operating cash flow) rather than through external financing. It's calculated as the difference between total planned capital expenditures and the amount that is financed.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Planned Capex — Total capital expenditures planned for the period
• Financed Amount — Portion of capex that will be covered through financing

Explanation: This calculation helps companies understand how much of their capital spending needs to be covered internally.

3. Importance of Unfinanced Capex Calculation

Details: Calculating unfinanced capex is crucial for cash flow planning and financial management. It helps companies determine how much internal funding they need to allocate for investments and whether they have sufficient liquidity to cover their capital spending plans.

4. Using the Calculator

Tips: Enter both planned capex and financed amount in the same currency. Both values must be positive numbers, and the financed amount should not exceed the planned capex (though the calculator will still compute the result if it does).

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between capex and unfinanced capex?
A: Capex refers to total capital expenditures, while unfinanced capex is the portion not covered by external financing.

Q2: What does a negative unfinanced capex mean?
A: A negative value indicates that financing exceeds planned capex, which might mean the company is over-financed or has reduced its capital spending plans.

Q3: How often should companies calculate unfinanced capex?
A: Typically calculated during budgeting cycles and reviewed quarterly as part of financial planning.

Q4: What are common sources of capex financing?
A: Debt financing, equity issuance, lease financing, or government grants/subsidies.

Q5: Why is unfinanced capex important for investors?
A: It shows how much a company needs to fund from operations, indicating potential impacts on cash reserves, dividends, or need for additional financing.