Cash Flow (Cfo) to Capex

Cash flow to Capex  = Cash From Operations / Capex.

This ratio compares a company’s operating cash flow to its capital expenditure (Capex) and shows you if a company’s business generates enough cash to meet its investment needs.

Thus a ratio greater than 1 means a company can meet its investment needs from cash the business generates.

Compare the ratio to other companies in the same industry before saying the ratio is good or bad.


More information

You can read more about all the red flag ratios in the screener here: Ignore these red flag ratios if you want lower returns