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Capital Intensity Formula

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Capital Intensity is a measure used to evaluate the amount of capital investment required by a company to generate revenue. Check FAQs

CI = \frac{TAA}{R}

CI - Capital Intensity?TAA - Total Average Assets?R - Revenue?

Capital Intensity Example

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Here is how the Capital Intensity equation looks like with Values.

Here is how the Capital Intensity equation looks like with Units.

Here is how the Capital Intensity equation looks like.

7.6923 = \frac{6E+6}{780000}

7.6923 = \frac{6E+6}{780000}

7.6923 = \frac{6E+6}{780000}

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Capital Intensity Solution

Follow our step by step solution on how to calculate Capital Intensity?

FIRST Step Consider the formula

CI = \frac{TAA}{R}

Next Step Substitute values of Variables

∴

CI = \frac{6E+6}{780000}

Next Step Prepare to Evaluate

∴

CI = \frac{6E+6}{780000}

Next Step Evaluate

∴

CI = 7.69230769230769

LAST Step Rounding Answer

∴

CI = 7.6923

Capital Intensity Formula Elements

Variables

Capital Intensity

Capital Intensity is a measure used to evaluate the amount of capital investment required by a company to generate revenue.

Symbol: CI

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Capital Intensity

Total Average Assets

Total Average Assets are obtained by summing the value of total assets at the beginning and the end of the period and dividing the result by 2.

Symbol: TAA

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Total Average Assets

Revenue

Revenue is the income that a business has from its normal business activities, generally from the sale of goods and services to customers.

Symbol: R

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Revenue

Other formulas in Operating and Turnover Ratios category

Go Inventory Turnover Ratio

ITR = \frac{COGS}{In}

Go Total Asset Turnover

ATO = \frac{S}{TA}

Go Working Capital Turnover Ratio

WCTR = (\frac{NS}{Avg WC}) \cdot 100

Go Fixed Asset Turnover Ratio

FAT = \frac{NS}{ANFA}

How to Evaluate Capital Intensity?

Capital Intensity evaluator uses Capital Intensity = Total Average Assets/Revenue to evaluate the Capital Intensity, The Capital Intensity formula is defined as a measure used to evaluate the amount of capital investment required by a company to generate revenue. Capital Intensity is denoted by CI symbol.

How to evaluate Capital Intensity using this online evaluator? To use this online evaluator for Capital Intensity, enter Total Average Assets (TAA) & Revenue (R) and hit the calculate button.

FAQs on Capital Intensity

What is the formula to find Capital Intensity?

The formula of Capital Intensity is expressed as Capital Intensity = Total Average Assets/Revenue. Here is an example- 7.692308 = 6000000/780000.

How to calculate Capital Intensity?

With Total Average Assets (TAA) & Revenue (R) we can find Capital Intensity using the formula - Capital Intensity = Total Average Assets/Revenue.

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Capital Intensity Formula

Capital Intensity Example

Capital Intensity Solution

Capital Intensity Formula Elements

Other formulas in Operating and Turnover Ratios category

How to Evaluate Capital Intensity?

FAQs on Capital Intensity

Variable Name