If capital expenditures have increased or appeared in the financial statements for the first time, it means that the company is investing in its development. In the future, this may lead to an increase in profits. CAPEX decreased. Perhaps the company sold its assets because it no longer needs them. But at the same time, if it previously, for example, actively modernized production and updated equipment, a decrease in CAPEX often leads to a reduction in profits and production volumes.
or becomes obsolete over time and needs to be replaced. Depending on the priorities and life cycle of the company, either a reduction or increase in operating or capital expenses may be beneficial. If the business owner expects poland telegram mobile phone number list dividends that are calculated from net profit, i.e. after taxes, it is preferable to reduce OPEX.
As a result, pre-tax profit and the income tax itself will decrease, and the amount of dividends will be higher. Companies that rely on business growth and development, rather than dividends, are advised to reduce monthly expenses and acquire assets, i.e. increase CAPEX. They will become an investment in the future and increase the value of the company's assets.