A ratio that measures a company's ability to acquire long term assets using free cash flow. The cash flow to capital expenditures (CF to CAPEX) ratio will often fluctuate as businesses go through cycles of large and small capital expenditures.CF to CAPEX is calculated as: |||As the CF to CAPEX ratio increases, it is usually a positive sign. If a company has the financial ability to invest in itself through capital expenditures (CAPEX), then it is thought that the company will grow.It is important to note that this is an industry specific ratio, and should only be compared to a ratio derived from another company that has similar CAPEX requirements.