Capital Intensity Calculator

✖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.ⓘ Total Average Assets [TAA]			+10% -10%
✖Revenue is the income that a business has from its normal business activities, generally from the sale of goods and services to customers.ⓘ Revenue [R]			+10% -10%

✖Capital Intensity is a measure used to evaluate the amount of capital investment required by a company to generate revenue.ⓘ Capital Intensity [CI]

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Formula

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Capital Intensity

Formula

`"CI" = "TAA"/"R"`

Example

`"7.692308"="6000000"/"780000"`

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Capital Intensity Solution

STEP 0: Pre-Calculation Summary

Formula Used

Capital Intensity = Total Average Assets/Revenue
CI = TAA/R
This formula uses 3 Variables

Variables Used

Capital Intensity - Capital Intensity is a measure used to evaluate the amount of capital investment required by a company to generate revenue.
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.
Revenue - Revenue is the income that a business has from its normal business activities, generally from the sale of goods and services to customers.

STEP 1: Convert Input(s) to Base Unit

Total Average Assets: 6000000 --> No Conversion Required
Revenue: 780000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

CI = TAA/R --> 6000000/780000

Evaluating ... ...

CI = 7.69230769230769

STEP 3: Convert Result to Output's Unit

7.69230769230769 --> No Conversion Required

FINAL ANSWER

7.69230769230769 ≈ 7.692308 <-- Capital Intensity

(Calculation completed in 00.004 seconds)

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Credits

Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has created this Calculator and 200+ more calculators!

Verified by Nayana Phulphagar

Institute of Chartered and Financial Analysts of India National college (ICFAI National College), HUBLI

Nayana Phulphagar has verified this Calculator and 1400+ more calculators!

< 4 Operating Ratio Calculators

Average Collection Period

Go Average Collection Period = Accounts Receivable/(Sales for Reporting Period/Reporting Period Length)

Equity Multiplier

Go Equity Multiplier = Total Assets/Total Shareholders' Equity

Sales to Receivables Ratio

Go Sales to Receivables Ratio = Net Sales/Net Receivables

Capital Intensity

Go Capital Intensity = Total Average Assets/Revenue

Capital Intensity Formula

Capital Intensity = Total Average Assets/Revenue
CI = TAA/R

What is Capital Intensity?

Capital intensity is a measure used to evaluate the amount of capital investment required by a company to generate revenue. It indicates the extent to which a company relies on capital equipment, machinery, buildings, and other tangible assets to support its operations and generate sales.
Capital intensity is typically calculated by comparing a company's capital expenditures (CapEx) to its total revenue or some other measure of output.
Capital Expenditures (CapEx): This represents the total amount of money spent by a company on acquiring, upgrading, or maintaining its capital assets, such as property, plant, equipment, and other long-term investments.
Total Revenue: This refers to the total amount of money generated by the company from its primary business activities.

How to Calculate Capital Intensity?

Capital Intensity calculator uses Capital Intensity = Total Average Assets/Revenue to calculate 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 calculate Capital Intensity using this online calculator? To use this online calculator for Capital Intensity, enter Total Average Assets (TAA) & Revenue (R) and hit the calculate button. Here is how the Capital Intensity calculation can be explained with given input values -> 7.692308 = 6000000/780000.

FAQ

What is 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 and is represented as CI = TAA/R or Capital Intensity = Total Average Assets/Revenue. 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 & Revenue is the income that a business has from its normal business activities, generally from the sale of goods and services to customers.

How to calculate 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 is calculated using Capital Intensity = Total Average Assets/Revenue. To calculate Capital Intensity, you need Total Average Assets (TAA) & Revenue (R). With our tool, you need to enter the respective value for Total Average Assets & Revenue and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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