---
title: "Definition of Capex/Rev"
url: https://signalscreener.fr/definition/capex-revenue/
markdown_url: https://signalscreener.fr/definition/capex-revenue.md
description: "The percentage of revenue that a company invests back into capital expenditures for property, plant, and equipment."
type: glossary-definition
site: Signal Screener
language: en
keywords:
  - "Capex/Rev"
  - "Capex to Revenue"
translations:
  de: https://signalscreener.fr/de/definition/capex-revenue.md
  es: https://signalscreener.fr/es/definition/capex-revenue.md
  fr: https://signalscreener.fr/fr/definition/capex-revenue.md
---

# Capex to Revenue

## What is Capex/Rev?

The percentage of revenue that a company invests back into capital expenditures for property, plant, and equipment.

## Think of it like this

Like a restaurant reinvesting a portion of its sales into new ovens and kitchen equipment to stay competitive.

## Formula

```
Capex/Revenue = Capital Expenditures ÷ Revenue × 100
```

- **Capital Expenditures**: Money spent on fixed assets like buildings, equipment
- **Revenue**: Total sales income

## Why it matters

- Shows how capital-intensive the business is
- High ratio may indicate growth investments
- Low ratio may mean mature business or asset-light model
- Affects free cash flow generation

## What's a good value?

| Range | Rating | What it means |
|---|---|---|
| < 3% | Asset-Light | Software, services companies |
| 3-8% | Moderate | Most consumer companies |
| 8-15% | Capital Intensive | Manufacturing, retail |
| > 15% | Heavy Investment | Utilities, telecom, heavy industry |

## Real-world example

Tech companies like Meta spend 15%+ on data centers, while software companies spend under 3%.

---

This is educational content, not financial advice.

Source: [Definition of Capex/Rev](https://signalscreener.fr/definition/capex-revenue/) on Signal Screener. Free to quote and cite with attribution and a link to that URL, which is the canonical one.

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