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:
INVESTOPEDIA EXPLAINS '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

Capital Expenditure (CAPEX)
Funds used by a company to acquire or upgrade physical assets ... 
Ratio Analysis
Quantitative analysis of information contained in a company’s ... 
Solvency Ratio
One of many ratios used to measure a company's ability to meet ... 
Qualifying Ratios
A set of ratios that are used by lenders to approve borrowers ... 
Liquidity Ratios
A class of financial metrics that is used to determine a company's ... 
Profitability Ratios
A class of financial metrics that are used to assess a business's ...
RELATED FAQS

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 >>
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. 
Credit & Loans
Debt Ratios
Learn about the debt ratio, debtequity ratio, capitalization ratio, interest coverage ratio and the cash flow to debt ratio. 
Markets
Operating Performance Ratios
Learn about the fixedasset turnover, sales/revenue per employee, operating cycle and dividend payout ratio. 
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. 
Markets
Profitability Indicator Ratios
Learn about profit margin analysis, effective tax rate, return on assets, return on equity and return on capital employed. 
Charts & Patterns
Why These Could Be 2015's 10 Best Biotech Stocks
A quick look at a 10 biotech companies that are poised to deliver for shareholders in 2015.