Red Flags

Capex on PPE

S&P Analyst Richard Tortoriello recommends using 'Capital Expenditures to Property, Plant and Equipment' as a red flag in his book 'Quantitative Strategies for Achieving Alpha'. This ratio shows the capital intensity of a company. In his studies, Tortoriello found that investing in companies with lower Capex to PPE generates higher returns.


Capex on PPE = Capital Expenditure Net Property, Plant & Equipment

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