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Financial Intelligence, Revised Edition
book

Financial Intelligence, Revised Edition

by Karen Berman, Joe Knight, John Case
January 2013
Beginner content levelBeginner
272 pages
6h 32m
English
Harvard Business Review Press
Audiobook available
Content preview from Financial Intelligence, Revised Edition

27

Figuring ROI

The Nitty-Gritty

Capital expenditures. Cap-ex. Capital investments. Capital budgeting. And of course, return on investment—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 expenditures go toward items and projects expected to help generate revenue for more than a year. The category is broad. It includes equipment purchases, business ...

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Publisher Resources

ISBN: 9781422144121