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The cash reinvestment ratio, also known as the cash flow reinvestment ratio, is a valuation ratio used to measure the percentage of annual cash flow that the company invests back into the business as a new investment
“Reinvestment” here does not mean investing activities, but rather the act of reinvesting capital back into the core business.
So it makes sense that to calculate the reinvestment ratio you include cash paid for long-term assets (reinvestment back into the company) but not ‘other investing activities’.
Hope that helps!