12/22/16

Hello! First time poster, looking for modeling help. Over the course of forecasting a company's results, I found that I was either just copying the previous quarters' D&A expense or guessing to make an assumption for that figure. I'm attempting to model out a company's long-lived assets to get a better idea of upcoming Capex and D&A expenses for each period. The company is US GAAP, so here's a snippet of what I get on an annual basis (Image 1).

Note that this only comes out annually, so it requires assumptions just to fill in the actuals from quarter to quarter. Here's how I've been attempting to go about it (Image 2). The end output is seen in the last image (Image 3). Note that we already have topline quarterly figures for the net values of the assets, capex, and acquisition of intangibles. So its just a matter of filling out the quarterly inputs so that they all add up to the top line.

The problem is that they don't. Each way I cut and slice the assumptions, they don't seem to add up from period to period with the top-line actuals I mentioned above. I've never attempted to model out specific asset classes before, so this model is original. I bring that up because its entirely possible that this is a fruitless endevour, and I'm wasting my time. Any tips would be appreciated, but I'm looking to hear from someone who has experience with forecasting D&A expenses and Capex. I'm working off the idea that if I can forecast the upcoming retirement of assets, we'll know when to expect a surge in Capex to replace those assets. Thank you!

PS, sorry for that jumbled image; they don't let you link to imgur on your first post for spam reasons, so I had to combine all three pics into one.

Financial Modeling