Difference between FCInv and WCInv

[Onestar]

Hello,
Does anyone mind explaining the difference between Fixed capital expenditures and Working capital expenditures?
There seems to be some overlap between the two, i.e. FCInv includes factories, office buildings and manufacturing equipment. WCInv is used by a company to upgrade or acquire equipment, property, factories etc.

 

[Oscar]

Working Capital Investments relate to short term assets and liabilities (~assets with a turnover of less than a year). These are to a large degree Receivables, Inventory, Payables and Prepayments.
In contrast CAPEX relates to long term fixed assets like factories, buildings and manufacturing equipment.
Hope this helps!
Best, Oscar

 

[S2000magician]

’Oscar’ wrote:Working Capital Investments relate to short term assets and liabilities (~assets with a turnover of less than a year or one operating cycle, whichever is longer).

For completeness.

 

[Oscar]

S2000magician wrote:

’Oscar’ wrote:Working Capital Investments relate to short term assets and liabilities (~assets with a turnover of less than a year or one operating cycle, whichever is longer).

For completeness.

Right, thanks for completion!
Oscar

 

[Onestar]

thanks guys!

 

[S2000magician]

My pleasure.