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Capital Assets

Overview

The Capital Assets module is composed of 3 interconnected items.

Fixed & intangible assets represent the net book value of long-term productive resources such as property, plant, equipment (PP&E), and intangible assets like patents or software. The closing balance is calculated as the opening balance plus capital expenditures (Capex), minus depreciation and amortization (D&A). This balance appears on the Balance Sheet under Assets.

Capital Expenditures (Capex) represents investments made in new or existing fixed and intangible assets. These additions increase the asset base and are reflected in the Cash Flow Statement under Cash Flow from Investing Activities.

Depreciation & Amortization (D&A) are non-cash expenses that reduce the asset base over time. They reflect the wear and tear or the usage of assets. D&A is recorded on the Income Statement and added back as a non-cash adjustment in the Cash Flow Statement under Cash Flow from Operating Activities.

Model flow

[NTD]

Adding a module

To add a module in a model, select one of the following node in the Blueprint window.

  • Schedule → Capital Assets
  • Income Statement → D&A
  • Change Depreciation & Amortization's Visible on Income Statement property value to True
  • Cash Flow Statement → Cash Flow from Operations → Non-cash Adjustment → D&A
  • Cash Flow Statement → Capex
  • Balance Sheet → Capital Assets

Editable properties

Fixed & intangible assets

Inclusion

[NTD: What does it do e.g., will create CA on schedule, then add it to BS]

Default: True

See Inclusion for more details

Name

[NTD: What does it do e.g., flow to Schedule, Standaone and elsewher on DCf, LBO, M&A]

Default: Capital Assets

See Name for more details

Depreciation & Amortization

Inclusion

Default: True

See Inclusion for more details

Visible on Income Statement

[NTD: What does it do e.g., will create CA on schedule, then add it to BS]

Default: False

Display Name

Default: D&A

See Name for more details

Forecast

The following foreascting methods can be applied:

Recommandation: Ratio (% of Revenue) for simple models, and Straight-line Basis for granular models.

Default: Ratio (% of Revenue).

Non Taxable

See Non Taxable for more details

Capital Expenditures

Inclusion

See Inclusion for more details

Name

See Name for more details

Forecast

The following foreascting methods can be applied:

Our recommandation and the default drive is Ratio (% of Revenue).

Additional Materials

See Capital Assets 101 page for more details