- I was looking at FY2018 of Adobe, Acquisitions is at 6.3billion on various companies. As acquisitions are normally used to boost the core business, should this be considered capex?
- When companies are acquired, do they normally get accounted into the balance sheet and income statements? Do we need to make any adjustment when getting the numbers from annual reports into the financial analysis?
- For cash and cash equivalents, should \”short-term investments\” be included as well? As they are quite substantial and they say it is \”ready for sale\” which means liquidity as good as cash?
Hi Lee Jun,
- Acquisition is not considered as capex. Capex are expense spend to maintain the operating business.
- No adjustment is needed as the figure will appear in the latest quarter.
- Short-term investments can be consider as cash. As for ready for sale, I will not consider it.
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