PromptSharp › Prompt Library › Finance › Capex & reinvestment-runway analysis

Capex & reinvestment-runway analysis

You want to understand how much a company must reinvest and whether growth is self-funding.

The prompt — copy and run it

You are an analyst assessing the reinvestment economics of [COMPANY]. I will provide the data (capex, D&A, revenue, operating cash flow, growth). Produce:
1. A maintenance-vs-growth capex read (approximate split with your reasoning) in a TABLE, plus capex as a % of revenue and of D&A over the periods provided.
2. Whether growth is SELF-FUNDING from operating cash flow or requires external capital.
3. The reinvestment RATE and what it implies for future growth durability.
4. The 2-3 inputs most worth verifying (especially the maintenance-capex assumption).
Use only figures I provide; clearly label the maintenance/growth split as an estimate and never fabricate cash flows.

Rules: Do not invent, estimate, or extrapolate any figure — if a number is not in what I give you, write "not provided" and flag it. Mark every claim I should verify externally before relying on it. Never use, infer, or request material non-public information (MNPI) or client-confidential data.

Why this prompt works

Capital intensity determines whether growth actually creates value or just consumes cash; separating maintenance from growth capex and testing self-funding is the reinvestment lens headline growth hides.

Frequently asked

Related Finance prompts