From ALL (ALLL11) 2010 earnings release:
Investimentos
"Os investimentos em expansão da operação brasileira cresceram 31,1% em 2010 sobre o mesmo período do ano anterior, enquanto os investimentos em manutenção aumentaram 8,7%, de R$279,7 milhões para R$303,9 milhões."
Investiment, in my humble understanding, is something that may increase the company's earnings power in the future. Money used to keep the trains rolling the same way they do today is expense.
Efeitos no Brasil do cenário financeiro nos EUA
3 weeks ago
2 comments:
I really don't know for this case, because I don't like this company. But it could make sense if this "spending" will contribute to more than one result. For example, if it had to spend a big amount to renew determined steel rail, it's acceptable to put it in the assets and charge a proportional amount every year. It's not every year you'll have this kind of expenses.
But it could just be a shenanigan to fool "investors"...
Investment cashflow must be compared to depreciation, to know how much the free cash flow really is.
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