When maintenance capex is listed in the cash flow statement, does this also add to PP&E on the balance sheet like you would with growth capex?
It doesn't make much sense to me because maintenance capex is maintenance, it's not adding new PP&E.
Thank you in advance!
Bless up if you ever find a cash flow statement that separates maintenance and growth capex (not sure you can do this under gaap? But I’m not an accountant). Usually you’re looking for a line called something like purchases of property, plant and equipment.
Either way, cfs is supposed to bridge you to cash, so if you’re spending on maintenance or growth it’s still a reduction in cash so needs to show up here. If cash is going down, and net income isn’t moving, you need an increase in an asset, so yes, pp&e goes up.
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