The capital intensity ratio is the amount of assets required per dollar of sales and it has a major impact on a firm's capital requirements.

Question

Quizplus · Accepted Answer

The capital intensity ratio is a measure of how much investment is required to produce a given level of sales, and thus has a significant impact on a company's capital requirements. A high capital intensity ratio means that a company requires significant investment in assets to generate sales, while a low ratio indicates that fewer assets are needed.

The Capital Intensity Ratio Is the Amount of Assets Required