How to Find Capital Expenditures on a Balance Sheet
A balance sheet usually will not contain a heading titled "Capital Expenditures." You have to know where to look on the balance sheet to determine what the capital expenditures are. This is the amount of money spent on equipment, plant facilities and any asset that is intended to have a long life and contribute to future growth. Once you know where to look on the balance sheet, you can readily learn the capital expenditure figure for any company.
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Instructions
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Look for a listing for property expenses on the balance sheet. This will be part of the capital expenditure figure because it indicates money was spent to purchase or lease property for the long-term operation of the company.
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Search for an expense labeled "Plant." This figure is the amount of money spent on the buildings for the company (as opposed to the land, which is under "Property"). Any improvements to existing buildings, the purchase of new buildings or leasing of buildings count as capital expenditures.
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Find an entry for expenditures on "Equipment." This is money spent to purchase machinery, vehicles, forklifts and any tools necessary to operate the company. This is considered a capital expense because equipment is purchased to last more than a year.
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Add together the figures for property, plant and equipment expenses. This is the capital expenditure figure for that company.
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Tips & Warnings
Sometimes companies list a figure called "PPE." This is an abbreviation for property, plant and equipment. This is the capital expenditure figure, and knowing this saves you the time of doing the calculations yourself.
A company with capital expenditures that are higher than its income is in a no-growth stage.
