Measures the efficiency of a company’s capital expenditures in generating returns.

What it Measures ?

How much revenue we earn from each rupee spent on equipment or assets.

Relevant StakeHolders 

CFO, Project Managers

In-depth Use Case / Real-world Example

Capital Expenditure Efficiency is calculated by dividing net operating income by capital expenditures. For example, if a company’s operating income is ₹500,000 and capital expenditures are ₹200,000, the efficiency ratio is 2.5. A higher ratio indicates effective use of capital investments in driving growth and profitability.