Capital Expenditure (CAPEX) is the investment of funding for a future benefit and Operating Expenditure (OPEX) is the ongoing running costs of the business.
CAPEX and OPEX Analysis and Projection provides the current and future CAPEX and OPEX measures based on contextual factors. CAPEX and OPEX Analysis and Projections can provide decision support with regard to various operating scenarios with different asset bases. It allows organisations to choose asset solutions that support their short and long-term financial goals, such as cash flow and leverage limits.
By applying CAPEX and OPEX Analysis and Projections, Capability Partners can support organisations to:
- Articulate their short and long term financial goals, including the advantages and limitations of different strategies including Whole of Life Analyses
- Estimate and account for cash flows for specific projects
- Project CAPEX requirements for future capabilities
- Determine asset replacement programs that reduce OPEX and Whole of Life costs
- Project future OPEX for the existing asset base
- Project future OPEX requirements for potential CAPEX solutions
- Assess the opportunity cost associated with various capability solutions