Capital spending share of cash flow (Capex/OCF)
How much of the cash from operations is consumed by capital spending.
What is left over after this is the free cash flow, so it sets what an owner receives.
How it is computed here
Capital expenditure / operating cash flow x 100
Measured over the latest complete fiscal year, as filed. Filed under risk. Neither a high nor a low reading is good on its own, so it is never coloured as one.
No published threshold exists for this figure, so this page prints none. Read it against the company's own history and its peers instead.
When it misleads
- Above 100 percent means the company is investing more than it generates, which can be aggressive growth or distress.
- Meaningless when operating cash flow is negative.
Questions
How is capital spending share of cash flow calculated?
Capital expenditure / operating cash flow x 100. Measured over the latest complete fiscal year, as filed.
What does capital spending share of cash flow tell a value investor?
What is left over after this is the free cash flow, so it sets what an owner receives.
When does capital spending share of cash flow mislead?
Above 100 percent means the company is investing more than it generates, which can be aggressive growth or distress. Meaningless when operating cash flow is negative.