Net Expense

When calculating interest expense and capex, does one take into account net interest expense and net capex? Or just interest expense & CapEx

Interest Expense: If a company has a large cash balance and earns interest on this cash, would you deduct the interest income from the interest expense when modelling? (specifically for credit investors)

CapEx: For CapEx do we just look at expenditures or do we take into account any asset sales to net CapEx? Let's say a large manufacturing sells machinery, would you net this?

2 Comments
 

Hi freank, just trying to help:

  • Change in net working capital and interest and tax expenses Ok, so I calculate net WC as current assets- current liabilites. Cash IS included in current ... assets, as it should be. Change in net WC is obviously just the delta between two years. My question is ... the cash account on the balance sheet go down too, thus impacting the change in net WC? And if the ...
  • Change in Net Working Capital Formula is CA- CL right? should i include cash while doing dcf? What is Net Working Capital? Conceptually ... speaking, net working capital shows us how much money is being sunk into running the business on a day to ... day basis that is not being represented on the income statement. Net working capital (NWC) is ...
  • Bootstrapped Entrepreneur Netting 7 Figures @ 25- AMA the revenue requirements passed, join EO/YPO. Expensive but great networking opportunities and ...
  • Diminutive Nature of Net Returns expenses, a 2% management fee and 20% carried interest: AUM: $100 Cash Liquidity: 15% Assets Invested: $85 ... works out to a 14.24% net return. So in order to hit a 14.24% return, the fund needs their investments ... to generate returns of 23.5%. Return on Invested Capital: 50% 40% 30% 20% 10% 5% Net Return to ...
  • Net debt: The definite list This funding source of the leased asset. This does also apply to other capitalized expenses (e.g. ... To arrive at the value to be added, the annual expense is multiplied by 8 (industry best practice). ... defined contribution plan (company pays the pensions as they occur). For net debt, only the first type is ...
  • Prepaid Expenses: Accounting space in advance, it's called a prepaid expense. In this case, the income statement doesn't ... change since Rover hasn't started using the office space yet (it's not expensed until Rover ... advance. Thus, we make cash adjustments to reflect this. If the net income (assuming nothing else changed) ...
  • Accrued expenses go up, how is the Income Statement impacted How will an increase in Accrued expenses impact Net Income etc? Prepping for an interview at ...
  • Got an Expensive Manhattan Apartment, Will I Have Enough Left Over to Have Fun? nets me $3200 a month. I know $3200 is a lot, but Manhattan is expensive and I've never lived ... expensive that I even imagined so I'm worried other 'normal' things will be just as ... expensive. Am I ok with this spending plan? If it matters, I will be keeping the bonuses, so I'll be ...
  • More suggestions...

Hope that helps.

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