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Key Performance Indicators (KPI)
book

Key Performance Indicators (KPI)

by Bernard Marr
September 2012
Intermediate to advanced
376 pages
6h 44m
English
FT Publishing International
Content preview from Key Performance Indicators (KPI)

17

CAPEX to sales ratio

Strategic perspective

Financial perspective

Key performance question this indicator helps to answer

To what extent are we investing in our future compared to our competitors?

Why is this indicator important?

Companies acquire new or update existing physical equipment, property or other so-called fixed assets to create future benefits. Companies make investments in fixed assets to help them to maintain or increase the scope of their operations. These investments are called capital expenditure (or CAPEX) and can include anything from repairing a roof to building a brand-new production plant.

When you compare CAPEX to sales it gives a company a sense of how much it is investing for the future. It is also useful to ...

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Publisher Resources

ISBN: 9780273750116