Which one of the following ratios indicates the amount of assets a firm needs to generate $1 in sales?
A)capital intensity ratio
B)return on assets
C)asset turnover rate
D)profit margin
E)earnings ratio

Question

Quizplus · Accepted Answer

The capital intensity ratio indicates the amount of assets a firm needs to generate $1 in sales. It reflects how capital intensive a business is.

Which One of the Following Ratios Indicates the Amount of Assets