Therefore, the capital intensity ratio is equal to one divided by the total asset turnover ratio. Capital Intensity Ratio =1÷Asset Turnover Ratio While a higher figure is preferred for the total asset turnover, a lower figure is better for the capital intensity ratio, since less capital spen...
A high turnover ratio indicates that a company’s short-term assets and liabilities are being used effectively to drive sales. In other words, for every rupee of working capital employed, it generates a higher rupee amount of sales. A high working capital turnover ratio indicates that a busin...
Working capitalis the asset base after taking into account liabilities. The working capital turnover ratio shows the company's ability to pay its current liabilities with its current assets. We calculate the working capital turnover ratio by taking net sales over current assets minus current liabili...
Fixed Asset Turnover Ratio Inventory Turnover Ratio Working Capital to Sales Ratio Introduction to Profitability Ratios What are Common Size Statements ? Return on Assets (ROA) - Meaning, Formula, Assumptions and Interpretation Return on Equity (ROE) - Meaning, Formula, Assumptions and Interpretation...
Read this article to understand the working capital turnover ratio, its formula and the ideal working capital turnover ratio.
We also provide a Capital Adequacy Ratio calculator with a downloadable excel template. You may also look at the following articles to learn more – Debt Service Coverage Ratio Formula How to Use Cash Ratio Formula? Calculate Asset Turnover Ratio Guide to Revenue Per Employee...
Activity Ratio Asset Turnover Ratio Fixed Asset Turnover Ratio Working Capital Turnover Turnover Ratio Analysis Inventory Turnover Ratio Accounts Receivable Turnover Accounts Payable Turnover Cash Turnover Ratio Equity Turnover Ratio Debtor Days Ratio Stock Turnover Ratio Capital Turnover Working Ca...
Capital intensity ratio of a company is a measure of the amount of capital needed per dollar of revenue. It is calculated by dividing total assets of a company by its sales. It is reciprocal of total asset turnover ratio.A high capital intensity ratio for a company means that the company...
This research is conducting an empirical test on the effect of capital structure, liquidity, asset structure and asset turnover on the financial performance of consumption industry sector companies in the Indonesia Stock Exchange in 2016-2018. The difference with previous research lies in the use of...
Formula of Capital Intensity Ratio A simple formula to get CIR is to divide the total assets by sales. Thus, CIR = Total Assets / Sales Another formula to calculate CIR is using the asset turnover ratio. CIR = 1 / Asset Turnover Ratio. ...