Capex to Revenue

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Definition

The Capex to Revenue ratio measures a company's investments in property, plant, equipment and other capital assets to its total sales. The ratio shows how aggressively the company is re-investing
its revenue back into productive assets.

A high ratio potentially indicates that a company is investing heavily, which could be a positive or a negative sign depending on how effectively it uses those assets to produce new income.

Formula

= Capex / Revenue

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