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Unfinanced CAPEX means, with respect to any Fiscal Period
, Borrower’s capital expenditures for that Fiscal Period that were paid by Borrower or a Subsidiary from cash flow and not through financing.
What exactly is meant by the term “unfinanced Capital Expense”?
Unfunded Capital Expenditures refers to all Capital Expenditures made by the Borrower that were not financed by the applicable seller or any third party lenders. For the sake of clarity, it should be noted that any capital expenditures that are paid for using revolving advances will be seen as unfinanced capital expenditures even if the borrower uses the funds for other purposes.
How do you locate unfinanced capital expenditures?
- Get a hold of the financial statements for your company. You will need the financial paperwork for the past two years of your firm in order to calculate the amount of capital expenditures. …
- Deduct the value of the fixed assets…
- Calculate the total depreciation by first subtracting the accumulated depreciation.
What exactly does it mean to be unfinanced?
Filters. Un financed; lacking access to any financing options. We still have significant liabilities that have not been financed. adjective.
What exactly is meant by “normalized CapEx”?
Normalized Capital Expenditures refers to the anticipated annual Capital Expenditures at the Properties, as determined by the Lender in a reasonable manner, based on historical Capital Expenditures at the Properties during the initial term of the Loan (taking into account any amounts that were actually reimbursed in respect of Capital Expenditures… ). Normalized Capital Expenditures are calculated using historical Capital Expenditures at the Properties. Normalized Capital Expenditures are calculated using
On the cash flow statement, capital expenditures are denoted by.
43 questions found in related categories
What is a good ratio for capital expenditures?
How to Make Sense of Cash Flow in Relation to Capital Expenditures (CF/CapEX)
A high ratio of cash flow to capital expenditures is considered a positive indicator, while a low ratio is considered an indicator of future growth. Consider a automobile. If all else stays the same, having a tank full of gas is preferable to driving around in an empty vehicle.
What does the term CapEx mean?
Capital expenditures, often known as CapEx, are the monies that are used by a corporation to acquire, improve, and maintain their tangible assets, such as land, plants, buildings, machinery, or other forms of technology. The undertaking of new projects or investments is one of the most common uses of a company’s capital expenditure.
Is “unfunded” indeed a word?
For purposes of games like Scrabble, Words with Friends, Crossword, and others, the term “unfund” can be used in the dictionary. There are six letters that make up the word “unfund.”
What does it mean to be underfunded?
to make insufficient financial provisions for as a transitive verb.
What Funded debt?
A company’s debt that will mature over the course of more than one year or one business cycle is referred to as funded debt. Since the length of funded debt is greater than one year, it is also referred to as long-term debt. This type of financing is not the same as equity financing, in which businesses raise funds by selling stock to investors.
What exactly is an example of CapEx?
Physical assets, such as buildings, equipment, machinery, and vehicles, are all examples of CAPEX. Other examples include computers and software. Expenses that fall under the category of OPEX include things like property taxes, rent, utilities, and salaries paid to employees.
What exactly is the formula for CapEx?
In order to get a clearer picture of how each of these phases is carried out, you can utilize the following CapEx formula: PP&E (Current Period) minus PP&E (Previous Period) plus Depreciation equals CapEx. It is important to take note of the line item on your balance sheet referred to as PP&E, which stands for property, plant, and equipment.
How does one account for CapEx?
The cash that is forked over for CAPEX investments is not immediately reflected on an income statement. On the other hand, it is accounted for as an asset on the balance sheet, and the cost of its depreciation is expensed over the course of several years, beginning with the year that immediately follows the date on which the item was purchased.
Is investing a capital expenditure?
Capital expenditures are long-term investments, and it is expected that the assets purchased will have a usable life of at least one year following their purchase. The acquisition of real estate, machinery, tools, land, computers, furnishings, and software are all examples of the kinds of expenditures that fall under the category of capital.
Are capital leases considered capital expenditures?
The cash flow statement does not include it under the heading of capital expenditures. On the other hand, the treatment of a capital lease of an asset is quite similar to the treatment of outright ownership of an asset (even though the lessor retains legal possession of the item)…. Each payment for the lease is broken down into two parts: an interest payment and a payment toward the principal.
What exactly is meant by the term “unfunded capital commitment”?
The term “unfunded capital commitment” refers to the percentage of a Member’s capital commitment that has not yet been taken down in accordance with one or more contribution notices, as such amount may be amended in accordance with this Agreement…. The term “Unfunded Capital Commitment” refers to the total amount of the Unused Capital Commitments without any duplication.
Is there a word for inadequately funded?
When an organization or institution does not receive sufficient funding, it does not have enough money to spend, and as a result, it is unable to operate effectively.
Are there insufficient funds for the public schools?
According to Mr. Gavrielatos, “public schools in New South Wales will be underfunded by .5 billion, whilst private schools in the state have been overfunded to the tune of 7 billion.” This indicates that children attending private schools receive an additional 6 in funding per student, while students attending public schools receive an additional ,525 in funding per student.
How do you spell unfunded?
not given a fund or money; not financed with money or a fund.
What exactly is a facility that is not funded?
Unfunded loan commitments are contractual obligations for future funding that are made by a financial institution but are not yet funded…. Any principle reductions that were obtained over the term of the loan have been applied to the reduction of the overall loan total and are therefore unavailable for withdrawal.
What exactly is the meaning of unraveled?
1a: to detach or free the individual strands or threads of: detangle. b: to make anything to come apart by separating the threads of (something), either literally or symbolically. 2: to find a solution to the complication, difficulty, or obscurity of; to clear up or unravel a enigma. verb with no direct object form meaning “to become unraveled.”
Is capex good or bad?
Capital expenditures are the money that are used by a firm for the purchase, improvement, or upkeep of long-term assets. These funds can also be referred to as investment expenditures. These assets have another purpose, and that is to increase the company’s productivity or capacity… As a result, making informed choices about a company’s capital expenditures (CapEx) is of the utmost significance to the company’s long-term financial well-being.
What does it signify when capex is negative?
Because they are funds that are being removed from your balance sheet, capital expenditures are considered to be in the negative. They also indicate a negative capital expenditure when viewed in the context of cash flow statements. Capital expenditures, also known as capital outlays, are payments made to finance the acquisition of assets that will continue to benefit your company for more than one year.
Which is better, capex or opex?
Opex is typically preferred over Capex when it comes to income tax planning by businesses. For this reason, companies will lease gear from a supplier rather than purchase it altogether…. On the other hand, if a corporation wishes to increase its earnings and book value, it may decide to make a capital expense and only deduct a tiny fraction of it as an expense. This strategy is known as “double-dipping.”