Future Capital Maintenance
Categories: Company Management
You drive for a ride-sharing company. You need your car to make money. That car periodically requires certain updates and improvements: oil changes, new brakes, new muffler etc. These costs come in addition to the expenses you need to run the car on a regular basis (like gas). Meanwhile, your car will eventually break down entirely and you’ll need a new one.
These expenses fall into the category of future capital maintenance. The term refers to the money a firm projects spending down the road for its fixed assets. Think: repairs, updates, and replacements for big-ticket items needed to keep operations humming.