DEFINITION of '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:
Next Up
BREAKING DOWN 'Cash Flow To Capital Expenditures  CF to CAPEX'
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.
RELATED TERMS

Cash Flow
The net amount of cash and cashequivalents moving into and out ... 
Capital Expenditure (CAPEX)
Capital expenditure, or CapEx, are funds used by a company to ... 
Ratio Analysis
A ratio analysis is a quantitative analysis of information contained ... 
Solvency Ratio
One of many ratios used to measure a company's ability to meet ... 
Activity Ratios
Accounting ratios that measure a firm's ability to convert different ... 
Coverage Ratio
A measure of a company's ability to meet its financial obligations. ...
Related Articles

Fundamental Analysis
Ratio Analysis Tutorial
If you don't know how to evaluate a company's present performance and its possible future performance, you need to learn how to analyze ratios. 
Markets
How To Use PriceToSales Ratios To Value Stocks
Take a look at how this effective ratio can be influenced by certain critical factors. 
Investing
Measure Your Portfolio's Performance
Learn three ratios that will help you evaluate your investment returns. 
Fundamental Analysis
Dynamic Current Ratio: What It Is And How To Use It
Learn why this ratio may be a good alternative to the current, cash and quick ratios. 
Active Trading Fundamentals
Leading Indicators Of Behavioral Finance
Discover how putcall ratios and moving averages can be used to analyze investor behavior. 
Markets
Operating Performance Ratios
Learn about the fixedasset turnover, sales/revenue per employee, operating cycle and dividend payout ratio. 
Credit & Loans
Debt Ratios
Learn about the debt ratio, debtequity ratio, capitalization ratio, interest coverage ratio and the cash flow to debt ratio. 
Markets
Profitability Indicator Ratios
Learn about profit margin analysis, effective tax rate, return on assets, return on equity and return on capital employed. 
Markets
Investment Valuation Ratios
Learn about per share data, price/book value ratio, price/cash flow ratio, price/earnings ratio, price/sales ratio, dividend yield and the enterprise multiple. 
Economics
Understanding CostVolume Profit Analysis
Business managers use costvolume profit analysis to gauge the profitability of their company’s products or services.
RELATED FAQS

Why do companies often treat events such as the purchase of an asset or construction ...
Companies treat events such as purchasing building facilities or other fixed assets as a capitalized cost because they are ... Read Full Answer >> 
Stocks with high P/E ratios can be overpriced. Is a stock with a lower P/E always ...
The short answer? No. The long answer? It depends. The pricetoearnings ratio (P/E ratio) is calculated as a stock's current ... Read Full Answer >> 
What is Fibonacci retracement, and where do the ratios that are used come from?
Fibonacci retracement is a very popular tool among technical traders and is based on the key numbers identified by mathematician ... Read Full Answer >> 
What items are considered liquid assets?
A liquid asset is cash on hand or an asset that can be readily converted to cash. An asset that can readily be converted ... Read Full Answer >> 
Do you discount working capital in net present value (NPV)?
Net present value (NPV) calculations should include the discounted value of changes in working capital. This treatment of ... Read Full Answer >> 
How is working capital different from fixed capital?
There are several key differences between working capital and fixed capital. Most importantly, these two forms of capital ... Read Full Answer >>