How to calculate capital expenditures using a company’s financial statements?
Under U.S. GAAP, a company is required to include a statement of cash flows. Within the investing section of the statement of cash flows, a company is required to quantify cash outflows from the purchase of equipment, along with cash inflows from the sale of equipment. The cash flow statement is the best way to calculate capital expenditures for a company. This is captured in #1 in the visual below.
The visual below illustrates the cash flow statement from the 2019 annual report (10-K) for Apple. The yellow highlight in the investing section represents capital expenditures.
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