A low capital expenditures ratio indicates a higher need to obtain outside financing to expand property, plant, and equipment assets.

Name: A low capital expenditures ratio indicates a higher need to obtain outside financing to expand property, plant, and equipment assets.
Brand: Quizplus
Rating: 4.8 (30 reviews)

Question

Quizplus · Accepted Answer

A low capital expenditures ratio means that the company is not investing enough in its property, plant, and equipment assets. This means that the company will need to obtain outside financing to expand these assets.

A Low Capital Expenditures Ratio Indicates a Higher Need to Obtain