Annual capex spend and intensity.

Capex is the cash a business spends on long-term physical assets: buildings, machinery, vehicles, IT infrastructure. Calculate it as current PP&E minus previous PP&E plus depreciation (which reduced the book value). Capex intensity - capex as percentage of revenue - tells you whether the business is asset-light (under 3%) or asset-heavy (15%+).

Current PP&E 8M, previous 6M, depreciation 1.5M = capex of 3.5M. On 30M revenue, that's 11.7% capex intensity - typical of industrial manufacturing. Software and consulting businesses usually show 1-3% intensity (servers, laptops); utilities and telecom 15-25% (infrastructure-heavy).

Maintenance capex (just keeping the existing business running) is often 60-80% of total capex. Growth capex (expanding capacity) is the balance. Separating the two is critical: 5M maintenance capex on a 50M revenue business isn't growth investment - it's the cost of running the existing machinery. Investors reward growth capex much more than maintenance.

Run it with sensible defaults

Using current pp&e of 8,000,000, previous pp&e of 6,000,000, depreciation of 1,500,000, revenue of 30,000,000, the calculation works out to 3,500,000.00. Nudge the inputs toward your own situation and the output recalculates instantly. The defaults are meant as a starting point, not a recommendation.

The levers in this calculation

The inputs — Current PP&E (end), Previous PP&E (start), Depreciation (period), and Revenue (for intensity) — do not pull with equal force. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.

How the math works

Capex = current PP&E - previous PP&E + depreciation. Intensity = capex ÷ revenue × 100. The working is transparent — you can verify every step yourself in the formula section below. No black box, no opaque "proprietary model".

What to do with a low result

A disappointing result is information, not a judgement. Pick the single input that dragged the figure down most and focus the next quarter on that one factor. Breadth-first improvement rarely works; depth-first on the worst input usually does.

What this doesn't capture

The score is a composite of the inputs you provide. Life context — job security, family obligations, health, housing — doesn't appear in the math but shapes the real picture. Use the number as a prompt, not a verdict.