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QuestionsCategory: Financials QuadrantCapex calculation, cash and cash equivalents clarification – ADBE
lee jun asked 10 months ago


  1. 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?
  2. 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?
  3. 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
Victor Chng answered 10 months ago

Hi Lee Jun,

  1. Acquisition is not considered as capex.  Capex are expense spend to maintain the operating business. 
  2. No adjustment is needed as the figure will appear in the latest quarter.
  3. Short-term investments can be consider as cash. As for ready for sale, I will not consider it. 
lee jun replied 10 months ago

thanks for clarification :)

lee jun replied 10 months ago

Would you consider purchase of intangible assets to be part of capex?

Victor Chng replied 10 months ago

Hi Lee Jun,

Intangible assets is not a capex

Adeline Ling replied 10 months ago

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.

Victor Chng replied 10 months ago

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.

James Lim answered 8 months ago

is “Purchase of investment properties” counted as capex ?

Victor Chng replied 8 months ago

Hi James,

Capex is usually term as purchase of property, plant and equipment. Buying of investment properties does not sound like a capex to me.