Open topic with navigation

Real Estate Portfolio Management / Strategic Financial Analysis / Financial Analysis

Capital and Expense Matrix

The Capital and Expense Matrix shows a unified view of the total costs associated with your assets. It displays an interactive matrix of this fiscal year's infrastructure costs recorded in ARCHIBUS.

The matrix shows the proportional contribution of each classification of cost. For example, Profit and Loss Expenses shows the percentage each cost category contributes to the total.

For a description of the rollups that are shown by default, see SFA - Capital and Expense Matrix - Rollup Descriptions.

From the Capital and Expense Matrix, as the cost analyst, you can:

• Select metrics to display in other panels when you drill down for further detail. You can select an asset box, expense box, or roll up box; the side-by-side comparison will display the essential metrics associated with that box. For instance, for Rent Expense, the comparison might show Rent / sqft, Rent / headcount, Total Rent / Year, Remaining Lease Commitment Costs.
• Present to senior leadership and other stakeholders the overall structure of the costs and percentage contribution of specific categories. This orientation often serves as an introduction to a specific investment choice, cost allocation decision, or cost reduction plan. The matrix illustrates the context of that decision in terms of the overall business mission.

The matrix also serve to orient different stakeholders – such as finance, real estate managers, capital planners, facility managers, operations managers, energy managers – as to how their efforts fit into the overall structure of costs and asset value across the organization. Day to day, each role often uses different values, different calculations, and a subset of the information for the whole portfolio in order to make the decisions that fall under their purview. This matrix shows the larger context that these decisions must support.

The matrix unifies capital expenses and operating expenses into an analysis of total expenses that uses all costs. From the matrix, you can review:

• Total costs
• Capital holdings and the change in capital holdings and liabilities
• Profit and Loss Expenses
• Cash and Cost of Capital

See Also

For a description of the rollups that are shown by default, see SFA - Capital and Expense Matrix - Rollup Descriptions.