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!
| +192 | Change My Mind: Banks Shouldn’t Hire Foreigners at All | 51 | 25m |
| +126 | Article - UBS’ Investment Bank Keeps Losing Ground | 22 | 20m |
| +60 | An Exhaustive Guide: How to Solve Every Single Accretion/Dilution Question | 6 | 7m |
| +46 | When to Leave Office as Intern | 5 | 42m |
| +41 | Best IB Group Overall? | 25 | 10h |
| +31 | STEM student lost in London IB recruiting | 16 | 43m |
| +30 | Would you rather be a Touse Squid or a Bouse Mogger in IB | 2 | 1d |
| +25 | What do you say to ppl who don’t know EVR/LAZ/CVP/PJT | 22 | 14h |
| +20 | Still recruiting SA'27 | 12 | 1h |
| +20 | Help a Rising Sophomore at Non-Target | 7 | 23h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
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.
Non accusantium amet veniam ut nisi et ducimus itaque. Et eaque deleniti vel ut impedit. Dolorum sit ad itaque et cum blanditiis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...