Estimating a company's level of recurring capital expenditures is an important component of company analysis, being used to calculate free cash flow and " owner earnings" . Both free cash flow and owner earnings provide a useful check on a company's reported earnings .If they are different from reported earnings, then the reason for the difference should be investigated. A capital expenditures
. equation can be found at seekingalpha.com/article/158095-estimating-a-company-s-level-of-recurring-capital-expenditures,