The reason to look at "cash" instead of "revenue" before making capital investments.
What is important in making investment decisions for equipment is not just sales. Investment decisions should be considered in terms of "cash."
Even if there is an expectation that sales will increase due to capital investment, it does not necessarily mean that the actual cash flow will stabilize. In capital investment, it is important to consider not only sales and profits but also the investment amount, payback period, loan repayments, and cash flow. This article explains the key points to consider regarding capital investment in the manufacturing industry from a financial and cash perspective. *For more details, please download the PDF or feel free to contact us.*
basic information
For more details, please download the PDF or feel free to contact us.
Price range
Delivery Time
Applications/Examples of results
For more details, please download the PDF or feel free to contact us.
catalog（1）
Download All Catalogs
Recommended products
Distributors
In manufacturing equipment investment, decisions may be made based solely on manufacturers' estimates and the possibility of subsidies. However, when introducing high-cost equipment, it is necessary to confirm the "total investment amount," which includes not only the main price but also transportation, installation, construction, tools, jigs, and maintenance costs. Additionally, one must consider the funds until the subsidy is received, cash reserves after the investment, monthly repayment amounts, investment recovery periods, order forecasts, production plans, and gross profit estimates, as neglecting these can strain cash flow after implementation. Our company organizes the figures that should be confirmed before equipment investment based on experience in manufacturing and financial analysis. Before ordering high-cost equipment such as machining centers, CNC lathes, 5-axis machining machines, and 3D measuring instruments, we provide materials for the manufacturing industry that highlight often-overlooked aspects such as cash flow, repayment sources, and investment recovery. Equipment investment is not merely a machine purchase; it is a management decision that changes the way a company competes. We will provide insights to confirm subsidies, loans, self-funding, repayment plans, and order forecasts before placing an equipment order. Supervised by Toshirou Ooyama, a former successor of a machining company and tax accountant.