CAPEX to Sales Ratio measures the level of investments a company is making into its future. It compares the capital expenditure (CAPEX) to sales in a given period.
CAPEX to Sales Ratio = (CAPEX in period t / Net Sales in period t) x 100
This indicator is included in the book: Key Performance Indicators - the 75+ measures every manager needs to know, which contains an in-depth description of this KPI, as well as practical advice on data collection, calculations, target setting, and acutal usage.
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