Capex on PPE


S&P Analyst Richard Tortoriello recommends to use '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.

Formula:

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