Comments on: How to calculate capex from financial statements http://www.theprivateequiteer.com/how-to-calculate-capex-from-financial-statements/ A vignette into the aberrant thoughts of a private equiteer Sat, 28 Aug 2010 13:18:38 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Company Off Lease Equipment http://www.theprivateequiteer.com/how-to-calculate-capex-from-financial-statements/comment-page-1/#comment-7297 Company Off Lease Equipment Sat, 28 Aug 2010 13:18:38 +0000 http://www.theprivateequiteer.com/?p=1909#comment-7297 Why do people think that a stateowned oil company that would make gas cheap and employ 1000s is evilCommunism? Why do people think that a stateowned oil company that would make gas cheap and employ 1000s is evilCommunism?

]]> By: The Private Equiteer http://www.theprivateequiteer.com/how-to-calculate-capex-from-financial-statements/comment-page-1/#comment-7087 The Private Equiteer Mon, 11 Jan 2010 06:47:43 +0000 http://www.theprivateequiteer.com/?p=1909#comment-7087 Scott, thanks for the comment. The labels on the cash flow statement vary between companies and countries; in some it may be PP&E;, in some its Investment in Assets, and in some in mentions equipment or capital items.<br><br>Great point about referring to the supplementary notes to understand the cash flows further; I should edit the post for those whom don't make it to the comments.<br><br>As for debt and leases, for maintenance capex, we're indifferent about debt and leases. Any capex spend, regardless of source, needs to be accounted for in the valuation. The reason being that we're indifferent to capital structure and need to understand the maintainable cash flows on an apples-vs-apples basis. Scott, thanks for the comment. The labels on the cash flow statement vary between companies and countries; in some it may be PP&E;, in some its Investment in Assets, and in some in mentions equipment or capital items.

Great point about referring to the supplementary notes to understand the cash flows further; I should edit the post for those whom don't make it to the comments.

As for debt and leases, for maintenance capex, we're indifferent about debt and leases. Any capex spend, regardless of source, needs to be accounted for in the valuation. The reason being that we're indifferent to capital structure and need to understand the maintainable cash flows on an apples-vs-apples basis.

]]> By: Top 5 posts by traffic for 2009… and an intro into 2010 | A Private Equity Blog http://www.theprivateequiteer.com/how-to-calculate-capex-from-financial-statements/comment-page-1/#comment-6932 Top 5 posts by traffic for 2009… and an intro into 2010 | A Private Equity Blog Tue, 05 Jan 2010 03:41:19 +0000 http://www.theprivateequiteer.com/?p=1909#comment-6932 [...] How to calculate capex from financial statements – big surprise [...] [...] How to calculate capex from financial statements – big surprise [...]

]]> By: The Private Equiteer http://www.theprivateequiteer.com/how-to-calculate-capex-from-financial-statements/comment-page-1/#comment-3529 The Private Equiteer Mon, 13 Jul 2009 22:25:47 +0000 http://www.theprivateequiteer.com/?p=1909#comment-3529 Scott, thanks for the comment. The labels on the cash flow statement vary between companies and countries; in some it may be PP&E, in some its Investment in Assets, and in some in mentions equipment or capital items. Great point about referring to the supplementary notes to understand the cash flows further; I should edit the post for those whom don't make it to the comments. As for debt and leases, for maintenance capex, we're indifferent about debt and leases. Any capex spend, regardless of source, needs to be accounted for in the valuation. The reason being that we're indifferent to capital structure and need to understand the maintainable cash flows on an apples-vs-apples basis. Scott, thanks for the comment. The labels on the cash flow statement vary between companies and countries; in some it may be PP&E, in some its Investment in Assets, and in some in mentions equipment or capital items.

Great point about referring to the supplementary notes to understand the cash flows further; I should edit the post for those whom don’t make it to the comments.

As for debt and leases, for maintenance capex, we’re indifferent about debt and leases. Any capex spend, regardless of source, needs to be accounted for in the valuation. The reason being that we’re indifferent to capital structure and need to understand the maintainable cash flows on an apples-vs-apples basis.

]]> By: Scott http://www.theprivateequiteer.com/how-to-calculate-capex-from-financial-statements/comment-page-1/#comment-3528 Scott Mon, 13 Jul 2009 14:50:57 +0000 http://www.theprivateequiteer.com/?p=1909#comment-3528 If you are looking at the cash flow statement the line item to look for under Cash Flows from Investing Activities would usually be labeled Purchase of Property, Plant and Equipment. In addition the readers of a financial statement should also be looking to see if there are supplemental disclosures to the cash flow as this will disclose purchases of property plant and equipment by taking on debt, either long term or capital leases. If you are looking at the cash flow statement the line item to look for under Cash Flows from Investing Activities would usually be labeled Purchase of Property, Plant and Equipment. In addition the readers of a financial statement should also be looking to see if there are supplemental disclosures to the cash flow as this will disclose purchases of property plant and equipment by taking on debt, either long term or capital leases.

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