PP&E & D&A Schedule

Note: This is a simplified modeling exercise for practice only — not a real-world case study. Overview HubSpot is a cloud-based software company that provides customer relationship management and marketing automation solutions. As an asset-light business, its growth is primarily driven by software development, customer acquisition, and recurring subscriptions rather than significant investments in physical infrastructure. In an asset-light company, PP&E forecasting is typically modeled using operating assumptions rather than detailed asset-level schedules. This practice focuses on projecting net PP&E and amortization as percentages of revenue, then using the PP&E roll-forward and depreciation assumptions to calculate implied CapEx and total D&A. Learning Goals Understand how asset-light companies forecast Net PP&E using revenue-based assumptions rather than detailed asset schedules. Learn how PP&E as a percentage of revenue and Depreciation as a percentage of revenue drive a simplified fixed asset forecast. Project Amortization as a percentage of revenue using historical trends. Calculate implied CapEx using the PP&E roll-forward relationship between beginning PP&E, ending PP&E, and depreciation. Calculate D&A by combining depreciation and amortization.

Practice PP&E & D&A Schedule with interactive Excel modeling exercises in our Practice building supporting schedules for 3-statement modeling. module.

This hands-on modeling exercise helps you master PP&E & D&A Schedule through real-world Excel practice and financial modeling techniques.