Allocation of capital can be critical to the long-term success of your company. How can you know you are doing the best projects when your company your capital expenditure (capex) is limited?
A recent report from Credit Suisse indicates that the capex of large U.S. companies dropped last year. The top 1,500 listed US companies allocated only 6.1% of revenues to capex. However, a company that spends capital wisely has a tremendous opportunity to build value.