Financial Intelligence for IT Professionals: What You Really Need to Know About the Numbers

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Figuring ROI The Nitty-Gritty

Capital expenditures. Cap-ex. Capital investments. Capital budgeting. And of course, return on investment, or ROI. Many companies use these terms loosely or even interchangeably, but they’re usually referring to the same thing, namely the process of deciding what capital investments to make to improve the value of the company.

ANALYZING CAPITAL EXPENDITURES

Capital expenditures are large projects that require a significant investment of cash. Every organization defines significant differently; some draw the line at $1,000, others at $5,000 or more. Capital projects are typically expected to help generate revenue or reduce costs for more than a year. The category is broad. It includes equipment purchases, business ...