Hi,
- 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?
2 Answers
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.
thanks for clarification :)
Would you consider purchase of intangible assets to be part of capex?
Hi Lee Jun,
Intangible assets is not a capex
Hihi, capex = capital expenditures?
I always have a problem looking for this figure when I look at the annual report. Would appreciate some advice on how I can retrieve this figure. Thank you.
Hi Adeline,
Yes Capex is capital expenditures. You can look at the financial quadrant of the course under capex. I had explain in the video where you can get the figure.
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