Valuation - How to Calculate Net Capital Expenditure [CapEx]

Want to calculate net capital expenditure (CapEx) but don't have a cash flow statement? This video breaks down a simple formula using only 3 financial items: - Closing PP&E balance. - Depreciation Expense from the income statement. - Opening Property, Plant & Equipment (PP&E) balance. Using a step-by-step example, we show how to rearrange the PP&E formula to solve for Net CapEx and explain where it would appear in financial statements. Topics covered: - Step-by-step example calculation. - The formula for calculating Net CapEx. - Where Net CapEx appears in financial statements. - Why CapEx matters in financial modeling and analysis. You can learn more about this topic at https://corporatefinanceinstitute.com/resources/knowledge/modeling/how-to-calculate-capex-formula Now that you've learned how to calculate net capital expenditure, the next step is understanding how depreciation schedules fit into financial models. Watch https://youtu.be/XISQM-WBlOA to see how depreciation impacts cash flows, asset valuation, and M&A analysis. #CapEx #CapitalExpenditure