What is a high capital intensity ratio?
Click to see full answer
Just so, what is the capital intensity ratio at full capacity?
Capital Intensity Ratio. The capital intensity ratio reveals the amount of assets your business requires to generate $1 in sales. It equals total assets divided by annual sales. For this ratio, a smaller figure is better.
Secondly, what is the capital to labor ratio? Capital to Labour ratio measures the ratio of capital employed to labour employed. Typically, over time, firms tend to have a higher capital-labour ratio as they seek to gain productivity improvements from investment in capital and automating the production process.
Just so, what is capex intensity?
Measure of a firm's efficiency in deployment of its assets, computed as a ratio of the total value of assets to sales revenue generated over a given period. Capital intensity indicates how much money is invested to produce one dollar of sales revenue.
What is a good asset turnover ratio?
An asset turnover ratio of 4.76 means that every $1 worth of assets generated $4.76 worth of revenue. In general, the higher the ratio – the more "turns" – the better. But whether a particular ratio is good or bad depends on the industry in which your company operates.