This template calculates the associated spend and depreciation for a capital budget or forecast. There are three model components:
- CapEx - Simple is where you input spend lines for various capital expenditures and calculate the depreciation and spend on that line item
- Summary shows capital spend by category and department
- Drivers manage the picklists in the CapEx Templates
So using this pro forma template is pretty intuitive:
- Select the appropriate year at the top of the template
- Add line items for new or existing capital assets
- The template will calculate the depreciation and associated spend timing for you
- View results on the summary tab if desired
Use with Cube
This is an Excel template. You don't need to be a Cube customer to use it!
But if you are a Cube user, you can start using this template in under two minutes. Here's how.
Step 1: Open the template in Excel or Sheets.
Step 2: Customize the row and column headers to match your Cube's dimensions and filters.
Step 3: Select the range where you want to fetch your data.
Step 4: Fetch your data.
All About Capital Expenditures
Capital expenses (CapEx) are investments in upgrading a company's physical assets: buildings, technology, and equipment. Since they're such a major piece of a company's overall cash flow, you need to zero in on your capital spending.
Capital expenditures are payments recorded on a balance sheet instead of expensed in an income statement. However, capital expenditures are investments, meaning that any item with a life of less than a year (an operating expense, or OpEx) isn't quality and should be expensed on the balance sheet.
In other words, CapEx is anything your company spends money on that can be considered an investment and not a simple expense.
Some examples of CapEx include office space, technology or machinery, and vehicles.
Benefits of using a capital expenditures template
A capital expenditures template not only organizes financial data but also enhances strategic planning and decision-making in capital investment. Let's dive into the key benefits of using a CapEx template:
Streamlined Planning and Analysis: A CapEx template streamlines expenditure planning and tracking, offering a structured format for easy categorization, recording, and analysis of investments in machinery, equipment, or property.
Enhanced Accuracy: A CapEx template automates repetitive tasks and calculations, saving time and allowing analysts to concentrate on strategic analysis instead of data entry.
Time Efficiency: Automating repetitive tasks and calculations, the template frees up time for analysts to focus on strategic analysis, avoiding the tedium of data entry.
Consistency and Standardization: Standardizing CapEx reporting across different departments ensures cohesive investment strategy insights for senior management and stakeholders.
Historical Data Tracking: Serving as a historical data repository, a capital expenditure template offers insights for future planning, enabling more informed capital allocation decisions based on past investment outcomes.
Aligning CapEx planning with financial strategy
The alignment of capital expenditures (CapEx) planning with a company's overall financial strategy is a cornerstone of sustainable growth and fiscal health.
This alignment is crucial for ensuring that every investment in long-term assets, from advanced technology to new facilities, not only supports but also propels the broader financial objectives of the organization.
Each investment decision should undergo a risk-reward assessment, ensuring it aligns with the financial strategy and the potential benefits outweigh the costs.
Effective CapEx planning takes into account cash flow impacts and times investments to sustain current and future financial needs, while also integrating a long-term vision that anticipates market and technological shifts for informed decision-making.
- CapEx formula: how to calculate capital expenditures
- CapEx vs. OpEx: the difference between these types of expenditures
- Comparing different capital budgeting techniques
Grab your free CapEx template
Our free capital expenditures template for Excel is designed to streamline your financial planning, offering a user-friendly tool for effective investment tracking and analysis.
Enter your business email to the right and download the template to get started immediately.