About

Two as-filed ratios of hyperscaler capital spending (capex): Debt / Capex and free cash flow (FCF) / Capex. FCF is operating cash flow minus capex. Debt / Capex is new long-term debt over capex.

Instructions

Read the badge first. Treat FCF short as free cash flow below capex with Debt / Capex below 0.30.

Signals

• Spend rising - Free cash flow covers capex and spend is rising.
• Spend falling - Free cash flow covers capex and spend is falling.
• FCF short - Free cash flow is below capex and Debt / Capex is below 0.30.
• Debt financed - FCF / Capex is negative and Debt / Capex is high.
• Alert - Debt financed and the credit regime is Alert.