Divergence as a measure of intensity of capital expenditures

Abstract

Due to spontaneously emerging situations in utilization of capital expenditures, investors need to clarify conditions and evaluate intensity of conversion of finances into materialized elements of productive and non-productive expenditures. The main aim of this article is to find a complex estimate for the rate of utilization of such expenditures. We suggest a characteristic depending on the dynamic divergence of capital expenditure and values of fixed assets. We show that this characteristic is an adequate and credible measure of intensity of capital expenditures by analyzing data for Federal districts of Russia and European countries.