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Capex-to-Free-Cash-Flow Coverage Calculator

Measure how capital spending changes free cash flow and capital intensity.
Free cash flow
$10.0B
Capex as % of revenue
20.00%
Capex growth
42.86%

Free cash flow is definition-sensitive. Keep operating cash flow and capex periods consistent and investigate what the spending actually buys.

Rapid investment can coexist with strong operating cash flow while still compressing free cash flow. This calculator subtracts capital expenditure from operating cash flow, measures capex as a share of revenue, and compares current capex with the prior period.

Formula reviewed 2026-08-021 primary sourceMethodology and disclosures →

How this capex-to-free-cash-flow coverage calculator works

The model uses the common simplified definition of free cash flow: operating cash flow minus purchases of property and equipment. It then compares capex with revenue and the prior period.

Formula

Free cash flow = operating cash flow − capital expenditure

One period can be distorted by working capital, project timing, acquisitions, or delayed payments. Free cash flow is not a substitute for a full cash-flow analysis.

Primary specifications

Before you use the result

Assumptions

  • • All figures cover the same reporting period and currency unit.
  • • Capex uses a consistent filing line or company reconciliation.
  • • Acquisitions, leases, asset sales, and stock compensation are not automatically adjusted.

Quick start

  1. 1. Take revenue, operating cash flow, and capex from source filings.
  2. 2. Confirm whether management’s adjusted FCF definition differs.
  3. 3. Compare several periods and connect spending with capacity, depreciation, and required returns.

Frequently asked questions

Is free cash flow always operating cash flow minus capex?

That is a common definition, but companies and analysts may adjust additional items. Compare definitions before comparing firms.

Is high capex bad?

Not necessarily. It can create valuable capacity, but returns depend on utilization, pricing, useful life, financing, and competitive response.

Why compare capex with revenue?

The ratio is a simple measure of capital intensity, although business models and investment cycles differ.

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Go deeper

Investing glossaryUnderstand the conceptsStock researchApply it to real names

Capital spending is visible. The return is uncertain.

Members get the source-linked capex cycle, supplier map, monetization hurdles, catalysts, and breakpoints.

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