Cash Flow To Capital Expenditures - CF to CAPEX
- Cash Flow To Capital Expenditures - CF to CAPEX
- A ratio that measures a company's ability to acquire long term assets using free cash flow. The cash flow to capital expenditures (CF to CAPEX) ratio will often fluctuate as businesses go through cycles of large and small capital expenditures.
CF to CAPEX is calculated as:
As the CF to CAPEX ratio increases, it is usually a positive sign. If a company has the financial ability to invest in itself through capital expenditures (CAPEX), then it is thought that the company will grow.
It is important to note that this is an industry specific ratio, and should only be compared to a ratio derived from another company that has similar CAPEX requirements.
Investment dictionary.
Academic.
2012.
Look at other dictionaries:
Free cash flow — In corporate finance, free cash flow (FCF) is a cash flow available for distribution among all the security holders of a company. They include equity holders, debt holders, preferred stock holders, convertibles holders, and so on.There are two… … Wikipedia
Capital expenditure — Capital expenditures (CAPEX or capex) are expenditures creating future benefits. A capital expenditure is incurred when a business spends money either to buy fixed assets or to add to the value of an existing fixed asset with a useful life that… … Wikipedia
Capex — Saltar a navegación, búsqueda CApital EXpenditures (CAPEX o capex) son erogaciones de capital que crean beneficios. Una erogación de capital se realiza cuando un negocio gasta dinero tanto para comprar un activo fijo como para añadir valor a un… … Wikipedia Español
Earnings before interest, taxes, depreciation and amortization — (EBITDA) is a non GAAP metric that can be used to evaluate a company s profitability.::EBITDA = Operating Revenue – Operating Expenses + Other RevenueIts name comes from the fact that Operating Expenses do not include interest, taxes, or… … Wikipedia
Expense — Expenses redirects here. For the row about members expenses in the UK Parliament which started about May 2009, see United Kingdom Parliamentary expenses scandal. Accountancy Key concepts Accountant · Accounting period ·… … Wikipedia
List of business and finance abbreviations — This is a list of business and finance abbreviations.*ARPU Average revenue per user *B2B Business to Business *B2C Business to Consumer*CAPEX Capital Expenditures *CDS Credit Default Swap *CEO Chief Executive Officer *CFC Consumption of Fixed… … Wikipedia
