Net investment

Investment rates in the triad

The net investments in the business administration and economics , the gross investment minus depreciation .

General

Investments must be concretized in the technical discussion with regard to their actual economic significance. It is helpful to distinguish between gross and net investments.

If, for example, the development of the capital stock is to be tracked from point in time to point in time , it is not sufficient to take the capital stock of the point in time ( stock size ) and add up the gross investments that took place between points in time and ( flow size ), but you also have to deduct the depreciation that occurred between and on the capital stock. ${\displaystyle t1}$ ${\displaystyle t2}$ ${\displaystyle t1}$ ${\displaystyle t1}$ ${\displaystyle t2}$ ${\displaystyle t1}$ ${\displaystyle t2}$

The capital stock is thus calculated as the capital stock at the initial point in time, plus the gross investments made afterwards, minus the subsequent depreciations, or the capital stock grows by the net investments made.

The net investments can also assume values if the gross investments are smaller than the depreciation. ${\displaystyle <0}$

In the investment calculation, the term net investment is used for the value that was effectively invested after deducting discounts or public subsidies (analogous to the discount as a reduction in value when goods are sold).

calculation

Net investments are defined as the outflow of funds from investing activities less the proceeds from the disposal of assets:

   Erhöhung Buchwert Anlagevermögen
   + Abschreibungen auf Sachanlagevermögen
   + Buchwert Anlagenabgang
   = Zugang Anlagevermögen
   - Erlöse aus Anlagenabgang
   = Nettoinvestition

species

Positive net investments always lead to an increase in real capital , while negative net investments reduce it.

Individual evidence

1. ↑ Verlag Dr. Th. Gabler, Gablers Wirtschafts Lexikon , Volume 3, 1984, Sp. 2228