Cash Flow & Capital Allocation
CapEx / Depreciation
Shows how investment in long-lived productive assets enters, leaves or is allocated inside the company. It is a liquidity and capital-allocation read, not only an accounting-profit read.
CapEx / Depreciation
capexToDepreciation · Cash Flow & Capital Allocation
- Definition
- Shows how investment in long-lived productive assets enters, leaves or is allocated inside the company. It is a liquidity and capital-allocation read, not only an accounting-profit read.
- Calculation
- Capex / depreciation and amortization.
- Uses
- Key for mature businesses, dividend/buyback analysis and high-capex companies. It can mislead with temporary working capital, irregular capex, advance collections, M&A or refinancing. Cross-check net income, EBITDA, maintenance capex, net debt and ROIC.
