Thread: Capital Expenditures

Hi from Madrid!
I don't know how to translate 'Capital Expenditures' into Spanish. We can find this expression, for instance, in the follwing definition:
"Free Cash Flow describes the cash remaining from operations after adjustment for capital expenditures and dividends".
Or with this formula:
Free Cash Flow = Cash Provided by Operations - Capital Expenditures - Cash Dividends

Anyone could help me? Thanks in advance.

Luca Iloicap

Originally Posted by Luca Iloicap

Hi from Madrid!
I don't know how to translate 'Capital Expenditures' into Spanish. We can find this expression, for instance, in the follwing definition:
"Free Cash Flow describes the cash remaining from operations after adjustment for capital expenditures and dividends".
Or with this formula:
Free Cash Flow = Cash Provided by Operations - Capital Expenditures - Cash Dividends

Anyone could help me? Thanks in advance.

Luca Iloicap

Hi Luca;
Harrap's Spanish & English Business Dictionary suggest the following translation for "Capital expenditures", inversión en activos fijos.
I hope it helps. Saludos!
Ericka

Luca,
Capital Expenditures in Spanish is "Inversiones en bienes de capital".
Check out this online dictionary, it's really useful:
http://www.spanish-translator-servic...nish/index.htm
Best,
In-House

I found 2 options for "capital expenditures". Either "gastos de capital" or "inversión en capital fijo". But I´m really not sure which would be the best option...Just a suggestion....

Hi Luca! I'd suggest "gastos de capital".

Regards,

M

Originally Posted by In-House

Luca,
Capital Expenditures in Spanish is "Inversiones en bienes de capital".

I go with In-House on this one! Even though the anglo-saxon term reflects its own use in a financial (cash-flow) statement and refers to "expenditure" as money spent in a particular time (what is considered a "gasto" in Spanish), it is actually money invested that has to be economically depreciated in more than one period. Hence, in Spanish it is better to use "Inversiones en bienes de capital". I hope I have not messed everybody up! Basically, it's all about understanding the difference between the economical and financial concepts (something like "money in a statement" vs. "money in your pocket" )

En economía y finanzas el "gasto" está mas relacionado al corto plazo (un concepto que es desembolsado y/o consumido dentro de un mismo período). Inversión se refiere a conceptos cuyo consumo se realiza en mas de un período. La inversión se va "consumiendo" en lo que se descarga por período como "amortización/depreciación".
En el CAPEX, que es un concepto básicamente financiero, nos enfocamos en el desembolso monetario que se hace en el momento de la inversión (por ej. la apertura o ampliación de una planta en una empresa manufacturera). Obviamente se refiere al dinero que sale "del bolsillo" hoy, aunque la inversión misma sea "amortizada" en los períodos venideros. Ergo que tambien se puedan referir al CAPEX como "gasto de inversión".
Espero que se haya entendido