▼
Showing posts with label capex. Show all posts
Showing posts with label capex. Show all posts
Tuesday 28 May 2024

High capex companies are usually bad investments as they rarely produce enough free cash flow

›
Supermarket companies, in general have consistently spent more on capex than depreciation and produced very low free cash flow per share ...
Monday 27 May 2024

If free cash flow per share is consistently a lot lower than EPS, this is a warning sign.

›
 The 2 main reasons for FCF being lower than a company's EPS are: 1.  Poor operating cash conversion 2.  High levels of investment in ne...
Tuesday 14 May 2024

CAPEX: Look for companies where the capex ratio is consistently below 30%

›
Quality companies produce high ROCE (at least 15%) and lots of free cash flow because they don't need to spend much money on new asset...
Friday 5 October 2018

Which is Better: Dollars in the Hand or "in the Bush"?

›
Professional investment managers strongly favour corporations which can plow back a high percentage of earnings into growing their business...
Wednesday 28 March 2018

CAPITAL EXPENDITURES: not having them is one of the secrets to getting rich

›
CAPITAL EXPENDITURES: NOT HAVING THEM IS ONE OF THE SECRETS TO GETTING RICH               Cash Flow Statement      ($ in mi...
Friday 21 July 2017

Comparing average capex spending with depreciation and amortization.

›
1.   Where depreciation and amortization <<< capex In some cases, the annual depreciation and amortization expense is a lot less...

Calculating Owner Earnings of Buffett or the Company's Cash Profits

›
Buffett in his 1986 letter to shareholders described how he worked out what he called the "owner earnings".    This is also ref...
Thursday 13 April 2017

The Capital Expenditure Budget

›
This is extremely significant in some companies, less so in others. It will list all the planned capital expenditure showing the date w...
Monday 10 September 2012

Evaluating a Company - 10 Simple Rules

›
Having identified the company of interest and assembled the financial information, do the following analysis. 1.  Does the company have a...
Sunday 1 July 2012

Dividends and Total Returns

›
During the bull market, the pursuit of rapidly growing businesses obscured the real nature of equity returns. But growth isn't all t...
Saturday 30 June 2012

A great company with a Durable Competitive Advantage will have a ratio of Capital Expenditures to Net Income of less than 25%. Less is better.

›
Capital Expenditures are expenses on: fixed assets such as equipment, property, or industrial buildings fixing problems with an asse...
Wednesday 28 July 2010

Graphic representation of Cash Flows

›
Strong Cash Flows Competitive Dividends http://www.faqs.org/sec-filings/091210/NORTHWESTERN-CORP_8-K/ex99-1_westcoastpres.htm
Sunday 4 April 2010

Buffett (1986): The concept of Owners Earnings and Maintainance Capex

›
We got to know the master's views on his textile business. Let us go a year further and try to discuss what the guru has to say in his ...