In many cases, capital investments are a necessary and normal part of an industry. Consider an oil-drilling company that relies on heavy machinery to extractraw materialsto be processed. As opposed to a law firm that will have low-to-no capital investment requirements, capital-intensive businesse...
Bridge financing is quite common since there are always struggling companies. It can also be more prevalent in capital-intensive sectors. For example, the mining sector is filled with small players who often use bridge financing in order to develop a mine or to cover costs until they can issue...
Interest Expense– As with taxes, interest expense varies among companies and across industries. Some more capital intensive industries are more likely to have more interest expenses on their income statement than companies in less capital intensive industries. This expense is also found in the non-...
Cash Flow from Investing Activities = CapEx (Capital Expenditure)plus(Purchase of Long-Term Investments)plus(Business Acquisitions)lessDivestitures. CapEx, Purchase of Long-Term Investments, and Business Acquisitions are usually the biggest cash outflows; divesting or disposing of the assets leads to ca...
A high capital intensity ratio may be due to lower utilization of the company's assets or it may be because the company's business is more capital intensive and less labor intensive (for example, because it is automated). However, for companies in the same industry and following similar ...
For a company or industry with relatively low capital expenditures required to maintain its operations, EBITDA can be a good proxy forcash flow. However, for companies in capital-intensive industries such as oil and gas, mining, and infrastructure, EBITDA is a near meaningless metric. The extensi...
Reverse factoring has already disrupted the industry. Although it started with the automobile industry, it has done wonders in many capital-intensive industries like aerospace, pharma, telecom, consumer packaged foods, chemicals, etc. Many fintech firms are trying to explore this avenue of reverse ...
Knowledge-intensive service industry (KISI)HeterogeneityThis paper examines the impact of human capital mismatch on the innovation performance of knowledge-intensive service enterprises. With China's knowledge-intensive service industry as the research object, we construct a human capital allocation ...
of GDP in African countries has not been transformed into improvement in people's lives. He said that the mining industry belongs to capital intensive enterprises, and has a very limited positive impact on major issues related to the national economy and people's livelihood, such as job ...
Based on the two-sector model of capital-intensive industries and labor-intensive industries, this paper portrays the logic of differentiated behavior when Chinese state-owned companies and private enterprises choose which industry to enter.The research shows that China's foreign direct investment can ...