All else the same, lower return on assets (ROA) ratio would likely be associated with a firm which has a high capital intensity ratio, relative to other firms in the same industry.

Question

Quizplus · Accepted Answer

A high capital intensity ratio indicates a firm uses more assets relative to its revenue, which can lead to a lower return on assets (ROA) as ROA measures how efficiently a company uses its assets to generate profit.

All Else the Same, Lower Return on Assets (ROA) Ratio