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REDDIT

Is there a better accounting metric that can be looked at to determine how much money a company needs to substain itself vs investing in itself with free cash flow?

B
Mar 2, 2025 · 13:53

Basically, in Cash Flow Statements, you can go into investments in Property, Plant, and Equipment, but what has always annoyed me is the lack of transparency in what is needed to maintain the company vs just a pure investment play. Basically, I want a line that states "sustaining capital expenditures" vs "investments into growth."

Does that make sense? These GAAP reports can be vague. Going to conference calls can help, but it much nicer to just be able to look at an accounting statements and see something like that. Especially when it isn't uncommon for "investments" to be negative and weighing money brought in vs cost of just pure substainment would be incredibly useful to investors Am I missing something?