Netcapitalspendingisafinancialmetricthatcalculatestheamountacompanyinvestsinitsfixedassetsduringaspecificperiod.Itisdeterminedbysubtractingthebeginningfixedassetsfromtheendingfixedassetsandthenaddingbackdepreciation.Thismeasurehelpsbusinessesandinvestorsunderstandthegrowthorreductioninacompany'sfixedassetbase,whichiscrucialforassessingitslong-terminvestmentstrategyandoperationalcapacity.
