Company    Contact    Home    Products    Download    Order    Support 
Spireframe Software, makers of Value Investor - the easiest way to learn stock analysis and valuation of stocks. Spireframe Software, makers of Value Investor - the easiest way to learn stock analysis and valuation of stocks.  
Cash Flow to Capital Expenditures
Cash Flow from Operations 
 Cash Flow to Capital Expenditures =
Capital Expenditures

Explanation of Cash Flow to Capital Expenditures:

The Cash Flow to Capital Expenditures ratio measures a company's efforts to acquire long term purchases to better equip itself to do business.  Capital Expenditures of some companies go in cycles - making a series of large purchases over a few periods followed by a time of relative small activity while the company attempts to recoup its investments.  Resultantly, this ratio will also often fluctuate in cycles, depending on the company's activities.

Importance of Cash Flow to Capital Expenditures:

A high, or increasing Cash Flow to Capital Expenditures ratio is usually a positive sign, indicating the company has financial flexibility to invest in itself and make upgrades to its buildings, machinery, and processes.  This ratio is very industry specific - industries requiring large financial investments to operate will have a significantly different result than industries requiring small financial outlays.

Useful Links:

Calculate the Cash Flow to Capital Expenditures ratio and compare this to other companies and other ratios automatically,  - Download a FREE, fully-functional trial of Value Investor
Have you already tried Value Investor? Then order the full version - Order from our FAST, SECURE online order page.
What other financial terms, ratios, or other calculations would you like to see on this website or in Value Investor? Let us know!