Capex = Capex/Operating Cash Flow
Capex abbreviates 'Capital Expenditures' and can be summarised as investments (including acquisitions and divestments).
Capex (%) shows the company's total investment needs in relation to its operating cash flow.
What is Capex?
Capex comprises the significant costs for buying or repairing an asset in the company.
Capex can, for example, include the purchase of machines, the purchase of IT systems, building a new factory, or buying a new patent.
Industries with high investments in the business generally have a high Capex.
Things to keep in mind
- A high value is good.