Capital Assets
Overview
The Capital Assets module is composed of 3 interconnected item.
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.
[NTD: text re: forecasting relations Capex, D&A, Fixed assets]
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
Module 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 component
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
Name
Default: D&A
See Name for more details
Forecast
Methods that can be applied to forecast the item: - Hardcoded Input - Last Historical - Nil - Ratio - Growth Rate - Straight-Line Basis
Recommandation: Ratio (% of Revenue) for simple models, and Straight-line Basis for granular models.
Default: Ratio (% of Revenue).
Non Taxable
See Non Taxable page for more details
Capital Expenditures
Inclusion
See Inclusion page for more details
Name
See Name page for more details
Forecast
The following methods can be applied to forecas the component: - Hardcoded Input - Last Historical - Nil - Ratio - Growth Rate
Our recommandation and the default drive is Ratio (% of Revenue).
5. Additional Materials
See Capital Assets 101 page for more details