capital intensity |
|
Definition
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. Formula: Total assets ÷ Sales revenue.
email to a friend
print this definition
cite this definition
link to this page
capital intensity is in the Accounting & Auditing, Banking, Commerce & Finance and Investing subjects.
capital intensity appears in the definition of the following term: asset turnover ratio
This content can be found on the following page:
http://www.businessdictionary.com/definition/capital-intensity.html