How To Calculate Capital Expenditures? In this informative video, we will guide you through the process of calculating capital expenditures, commonly referred to as CapEx. Understanding CapEx is essential for effective financial planning within your business. We will outline the specific financial statements you need to gather and explain how to analyze the fixed assets section of your balance sheet. You’ll learn how to determine the change in fixed assets over a given period while excluding intangible assets and those obtained through mergers or acquisitions.
Additionally, we will cover how to calculate the depreciation for the current year and how to combine this figure with the change in fixed assets to arrive at your total capital expenditures. By using a straightforward formula, you will see how to apply these concepts in practice. This video aims to equip you with the knowledge necessary to assess your company’s investment in fixed assets, which plays a vital role in your overall financial health.
Join us for this detailed discussion to gain a better understanding of CapEx and its importance in managing your business effectively. Don’t forget to subscribe to our channel for more helpful tips on starting and managing a successful business.
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