Overview
CapEx Ratio, shows how effectively assets, receivables, inventory, and operating resources are utilized. Quarterly (Q) scope increases short-term volatility visibility.
Formula
Capital Expenditures (Trailing 12 Months) / Revenue (Trailing 12 Months) * 100
How to Interpret
High Value
If CapEx Ratio remains in this band, the market may reprice risk/return assumptions.
Low Value
A low CapEx Ratio band may require a more conservative capital allocation stance.
Where It Is Used
Interpreting CapEx Ratio with company-specific distribution ranges is usually more stable than relying only on sector average.