Formula
to calculate capital acquisition ratio:
Capital
Acquisition Ratio = (cash flow from operations -
dividends) / cash paid for acquisitions.
Capital
acquisition ratio definition and explanation:
The
capital acquisition ratio reflects the company's ability
finance capital expenditures from internal
sources.
A ratio
of less than 1:1 (100 %) indicates that capital
acquisitions are draining more cash from the business
than it is generating.
The capital acquisition ratio is included in the financial
statement ratio analysis spreadsheets highlighted in the
left column, which provide formulas, definitions,
calculation, charts and explanations of each ratio.
The capital acquisition ratio is listed in our leverage
ratios.
The capital
acquisition ratio and other ratios are key
to understanding financial statements. Our
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Spreadsheets to
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explanations and charts):
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calculate, define and explain.
The capital acquisition
ratio may be included in our
custom 1, 3 or 5 period financial
statement ratio analysis spreadsheet.
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