Which one of the following ratios tells you 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 measures the amount of assets needed to generate $1 in sales, indicating how asset-heavy a company is relative to its sales.

Which One of the Following Ratios Tells You the Amount