Financial modelling terms explained

Capex to Revenue Ratio

The capital expenditure to revenue ratio, also known as CapEx ratio, is a measure of the amount of capital expenditures incurred by a company in relation to its total revenues.

What Is the Capex to Revenue Ratio?

The Capex to Revenue Ratio is the proportion of a company's revenue that is spent on capital expenditures. This metric is used to measure a company's efficiency in allocating its resources. A high Capex to Revenue Ratio may indicate that a company is not spending its money wisely, while a low ratio may suggest that a company is not investing enough in its future.

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