PPE Heavy Assets

Note: This is a simplified modeling exercise for practice only — not a real-world case study. Overview Disney is a global entertainment company with businesses spanning theme parks, resorts, cruise lines, film studios, and media networks. As a capital-intensive business, Disney requires significant ongoing investments in physical assets to maintain existing operations and support future growth. For capital-intensive companies, PP&E forecasting is commonly driven by operating assumptions for CapEx and D&A. This practice focuses on projecting CapEx and D&A as a percentage of revenue and using the PP&E roll-forward to calculate the ending Net PP&E balance. Learning Goals Understand how capital-intensive companies forecast Net PP&E using projected CapEx and D&A. Learn how CapEx as a percentage of revenue and D&A as a percentage of revenue drive a PP&E schedule forecast. Apply the PP&E roll-forward to calculate Ending Net PP&E from beginning PP&E, projected CapEx, and depreciation.

Practice PPE Heavy Assets with interactive Excel modeling exercises in our 3-Statement Supporting Schedules module.

This hands-on modeling exercise helps you master PPE Heavy Assets through real-world Excel practice and financial modeling techniques.