Capex Model

Start with the asset base and investment question

Establish opening net PP&E and allocate that balance to the positions you will schedule. Specify remaining life for existing assets. A historical closing book value does not reveal original cost or purchase date; do not recreate an asset register from one balance-sheet total.

Define the planning question: sustaining capacity, replacing equipment or adding capacity. Keep replacement and growth assumptions identifiable where reliable information exists. This page builds the forward plan; the capex transaction guide explains an individual purchase across the statements.

Choose revenue-based assumptions or an explicit plan

Capex as a percentage of revenue provides a top-down forecast when investment follows activity. EUR 2 million revenue at 5% implies EUR 100,000 additions. Check whether the ratio represents recurring needs or merely averages a lumpy historical project; a fixed ratio can mask a one-time expansion.

For identifiable projects, enter annual amounts by asset position and give later additions their own assumptions. Distinguish the payment plan from the depreciation convention. The investment implementation reference documents the available controls; the Operating Model supplies the activity behind a revenue-linked assumption.

Roll PP&E forward rather than setting a closing plug

Opening PP&E + additions − depreciation − carrying-value disposals = closing PP&E. Tie the ending balance into the next period’s opening balance. In the preview, EUR 300,000 opening assets plus EUR 100,000 additions less EUR 110,000 depreciation gives EUR 290,000 closing PP&E in 2026.

For 2027, EUR 290,000 plus EUR 150,000 less EUR 135,000 gives EUR 305,000. PP&E can fall despite positive capex when depreciation exceeds additions. Keep intangible positions separately classified: their carrying values do not also belong in tangible PP&E.

Give additions their own useful life and timing

An addition does not reset the life of existing assets. Opening EUR 300,000 is spread over three remaining years; each new addition uses five years with a half-year first charge. EUR 100,000 new investment contributes EUR 10,000 depreciation initially and EUR 20,000 in a subsequent full year.

Compare supported full-year, half-year or exact-date conventions and review the final capped charge. The integrated depreciation forecast develops vintage and source logic. The depreciation calculator examines supplied cost, life and timing assumptions separately.

Separate the investment payment from its funding

A cash purchase increases assets and reduces investing cash flow. Later depreciation is non-cash. Do not count the purchase again as operating expense or deduct depreciation from cash after recognizing the investment payment.

If a loan funds the purchase, plan the draw and repayment in the debt forecast. Record financing inflow and investing outflow separately. The Assets & Financing Model brings both schedules together; the cash-flow reference documents their presentation.

Review the investment case in a connected forecast

Compare an expansion with a replacement-only case using the same opening assets. Review PP&E, depreciation, EBIT and cash. Investment does not automatically create revenue: an expected operating benefit needs a separate supported assumption.

The simplified detailed asset schedule uses zero residual value and carrying-value disposal proceeds. Gains, losses and impairment require separate treatment. Consult the D&A implementation reference before combining manual expense inputs with automatic asset-derived charges.

Distinguish recurring plans from one-off comparisons

A recurring forecast covers successive additions and continuing book values. A What-If transaction isolates one extra purchase with that tool’s fixed timing and life assumptions. It tests a decision without replacing the investment plan. Open the financial model above to build your own schedule; the preview does not import a project into saved work.