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The capital intensity ratio is the amount of assets required per dollar of sales. It is assets that increase when sales increase divided by sales. The capital intensity ratio of a firm affects its capital requirements. A company with a high assets-to-sales ratio will require more assets for a given increase in sales and therefore will have a greater need for external financing than a company with a lower assets-to-sales ratio.
The capital intensity ratio is the amount of assets required per dollar of sales. The capital intensity ratio of a firm affects its capital requirements. A company with a high assets-to-sales ratio will require more assets for a given increase in sales and therefore will have a greater need for external financing than a company with a lower assets-to-sales ratio.
The capital intensity ratio is the amount of assets required per dollar of sales. The capital intensity ratio of a firm affects its capital requirements. A company with a high assets-to-sales ratio will require more assets for a given increase in sales and therefore will have a greater need for external financing than a company with a lower assets-to-sales ratio.
The capital intensity ratio is the amount of assets required per dollar of sales. The capital intensity ratio of a firm affects its capital requirements. A company with a high assets-to-sales ratio will require more assets for a given increase in sales and therefore will have a greater need for external financing than a company with a lower assets-to-sales ratio.