Capital intensity

Capital intensity,

Definition of Capital intensity:

  1. The amount of capital required for a production process, in relation to other factors, especially labour; the ratio reflecting this relationship.

  2. Measure of a firms efficiency in deployment of its assets, computed as a ratio of the total value of assets to sales revenue generated over a given period. Capital intensity indicates how much money is invested to produce one dollar of sales revenue. Formula: Total assets ÷ Sales revenue.

Meaning of Capital intensity & Capital intensity Definition