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MAIN FOCUS :
Capital
DEFINITION :
The capital acquisition ratio reflects the company's ability finance capital expenditures from internal sources.
COMMENT :
A ratio of less than 1:1 (100 %) indicates that capital acquisitions are draining more cash from the business than it is generating.
FORMULA :
(cash flow from operations - dividends)
−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−
cash paid for acquisitions
Capital Acquisition Ratio
