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CAPEX to sales ratio
Strategic perspective
Financial perspective
Key performance question this indicator helps to answer
To what extent are we investing in our future compared to our competitors?
Why is this indicator important?
Companies acquire new or update existing physical equipment, property or other so-called fixed assets to create future benefits. Companies make investments in fixed assets to help them to maintain or increase the scope of their operations. These investments are called capital expenditure (or CAPEX) and can include anything from repairing a roof to building a brand-new production plant.
When you compare CAPEX to sales it gives a company a sense of how much it is investing for the future. It is also useful to ...
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