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Inputs

Capex Components:

  • Capex
    • Driver
    • Value
    • Due Dates
    • Depreciation Allocation
  • Depreciation
    • Method
    • Depreciation Period
    • Depreciation Rate
    • Residual Write-Off
    • Start

Calculations

Profit & Loss statement

 The Profit & Loss statement depends on the Depreciation Method and the allocated Depreciations.

Linear Depreciation

When linear Depreciation is selected, the acquisition value is evenly distributed over the Depreciation Period. When the acquisition value is for example EUR 120'000 and the Depreciation Period is 10 years respective 120 months, the expense is evenly distributed over the 120 months.

 01.201602.201603.201604.201605.201606.201607.201608.201609.201610.201611.201612.2016...12.2025
Profit & Loss statement-120'000-1'000-1'000-1'000-1'000-1'000-1'000-1'000-1'000-1'000-1'000-1'000-1'000...-1'000

Degressiv Depreciation

When degressiv Depreciation is selected, the Depreciation amount is the product of the book value from the previous period and the Depreciation Rate. When the acquisition value is for example EUR 120'000 and the Depreciation Rate is 40%, the Depreciation amount in the first year is EUR 48'000. On monthly basis the Depreciation Rate is 1-(1-0.4)^(1/12) = 4.17%. Thus there is a Depreciation amount of EUR 5'001 in the first month. The book value after Depreciation equals EUR 120'000 - EUR 5'001= EUR 114'999. The second month Depreciation amount is EUR 4'793.

With degressiv Deprecation method, there is never a book value of 0. Because of that, a Residual Write-Off is made on a defined date. In the following example the Residual Write-Off is after 10 years in December 2025.

 01.201602.201603.201604.201605.201606.201607.201608.201609.201610.201611.201612.2016...12.2025
Profit & Loss statement-120'000-5'001-4'793-4'593-4'401-4'218-4'042-3'874-3'712-3'558-3'409-3'267-3'131...-757

Immediate Depreciation

When immediate Depreciation is selected, the whole acquisition value is written down on a defined date. When the acquisition value is for example EUR 120'000 and the Due Date is 04.2016 the whole acquisition value is written down on this date.

 01.201602.201603.201604.201605.201606.201607.201608.201609.201610.201611.201612.2016...12.2025
Profit & Loss statement-120'000000-120'00000000000...0

Appreciation

When Appreciation is selected as method, the Appreciation amount is the product of the book value from the previous period and the Appreciation Rate. When the acquisition value is for example EUR 120'000 and the Appreciation Rate is 5%, the Appreciation amount in the first year is EUR 6'000. On monthly basis the Appreciation Rate is 1-(1-0.05)^(1/12) = 0.42%. Thus there is an Appreciation amount of EUR 512 in the first month. The book value after Appreciation equals EUR 120'000 + EUR 512= EUR 120'512. The second month Appreciation amount is EUR 514.

 01.201602.201603.201604.201605.201606.201607.201608.201609.201610.201611.201612.2016
Profit & Loss statement-120'000512514516518521523525527530532534536

Cashflow statement

 The Cashflow statement depends on Due Dates.

Different Due Dates affect the Cashflow statement. Multiply Due Dates can be defined for Capex, Transaction Expenditures and Construction Loans. On these Due Dates there is a cash drain or a cash inflow.

When Capex expenditures with an amount of for example EUR 10'000'000 are necessary, these costs can be distributed on different Due Dates. The following table shows the defined Due Dates:

DriverValueUnitPercentage
Transaction0Month60
Transaction24Month25
Transaction36Month15

At Transaction 60% of Capex are due, 24 months later 25% and 36 months after Transaction the remaining 15%.

 12.201501.2016...11.201712.201701.2016...11.201812.201801.2019
Cashflow statement-10'000'000-6'0000000...0-2'500'0000...0-1'500'0000

Balance Sheet

 The Balance Sheet yields from the Balance Sheet logic.

The Balance Sheet gets calculated from the closing Balance Sheet of the previous period and from the difference between the Profit & Loss statement and the Cashflow statement of the actual period.

Balance Sheet(t) = Balance Sheet(t - 1) + Profit & Loss statement(t) - Cashflow statement(t)

The following example explains this functionality:

 01.201602.201603.201604.201605.201606.201607.201608.201609.201610.201611.201612.2016
Profit & Loss statement48444444444444
Cashflow statement480012001200120012
Balance Sheet 480480480480

For 06 / 2016 the book value is calculated as follows:

Balance Sheet(06.2016) = 8 + 4 - 12 = 0

Properties

Capex costs can be financed internal or external:

Financial assets can be financed internal or external. Internal financing means that all assets are generated by the company itself. An external financing is an outside financing (Debt funding) or an equity financing (for example a Shareholder Loan).