A lot is accounting treatment, though I agree with you in terms of cash. Businesses with high value investment opportunities should spend every dollar they have

A lot is accounting treatment, though I agree with you in terms of cash. Businesses with high value investment opportunities should spend every dollar they have and then some. If it’s on something that gets expensed (Marketing) then profit is zero. If it’s something that gets capitalized (equipment) then the cash hit is immediate but profit impact is peanut buttered over time. Either way companies with growth prospects should spend. The flip side is that many companies get large enough that they can’t invest smartly any more. So they should give money back. (IBM, etc)