Future Capital Maintenance

A A A

DEFINITION

A term used to account for future expenses that a company expects to incur in order to maintain its fixed assets. This includes the funds necessary to renew, repair or replace an asset in order for it to continue to function as needed.

INVESTOPEDIA EXPLAINS

In order to obtain accurate earnings projections, the value of capital including future maintenance costs must first be determined. State, county and local governments can issue municipal bonds to raise funds for future capital maintenance costs.


RELATED TERMS
  1. Capital Maintenance

    An accounting concept based on the principle that income is only recognized ...
  2. Real Property

    Any property that is attached directly to land, as well as the land itself. ...
  3. Earnings

    The amount of profit that a company produces during a specific period, which ...
  4. Tangible Asset

    Assets that have a physical form. Tangible assets include both fixed assets, ...
  5. Capital Improvement

    The addition of a permanent structural improvement or the restoration of some ...
  6. Hard Asset

    A tangible and physical item or object of worth that is owned by an individual ...
  7. Succession Planning

    A strategy for passing each key leadership role within a company to someone ...
  8. Business Exit Strategy

    An entrepreneur's strategic plan to sell his or her investment in a company ...
  9. Earnings Per Share - EPS

    The portion of a company's profit allocated to each outstanding share of common ...
  10. Rollup

    A rollup (also known as a "roll up" or a "roll-up") is when ...
Related Articles
  1. Using The Price-To-Book Ratio To Evaluate ...
    Forex Education

    Using The Price-To-Book Ratio To Evaluate ...

  2. The Essentials Of Corporate Cash Flow ...
    Retirement

    The Essentials Of Corporate Cash Flow ...

  3. Use ROA To Gauge A Company's Profits
    Budgeting

    Use ROA To Gauge A Company's Profits

  4. Intangible Assets Provide Real Value ...
    Markets

    Intangible Assets Provide Real Value ...

  5. Free On Board
    Professionals

    Free On Board

  6. An Introduction To The CMA Designation
    Professionals

    An Introduction To The CMA Designation

  7. Turn Your Passion Into A Profitable ...
    Entrepreneurship

    Turn Your Passion Into A Profitable ...

  8. Who are Venture Capitalists?
    Investing

    Who are Venture Capitalists?

  9. Why do companies decide to unbundle ...
    Investing Basics

    Why do companies decide to unbundle ...

  10. Top 4 Most Competitive Financial Careers
    Professionals

    Top 4 Most Competitive Financial Careers

comments powered by Disqus
Hot Definitions
  1. Cash and Carry Transaction

    A type of transaction in the futures market in which the cash or spot price of a commodity is below the futures contract price. Cash and carry transactions are considered arbitrage transactions.
  2. Amplitude

    The difference in price from the midpoint of a trough to the midpoint of a peak of a security. Amplitude is positive when calculating a bullish retracement (when calculating from trough to peak) and negative when calculating a bearish retracement (when calculating from peak to trough).
  3. Ascending Triangle

    A bullish chart pattern used in technical analysis that is easily recognizable by the distinct shape created by two trendlines. In an ascending triangle, one trendline is drawn horizontally at a level that has historically prevented the price from heading higher, while the second trendline connects a series of increasing troughs.
  4. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
  5. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  6. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
Trading Center