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...
Capital-intensive industries and growing industries tend to retain more of their earnings than other industries because they require more asset investment just to operate. Also, because retained capital represents the sum of profits less dividends since inception, older companies may report significantly ...
the EV/EBIT ratio can’t be used in isolation. Analysts and investors should use the ratio alongside others to get a full picture of a company’s financial state and actual worth, whether the market’s interpretation of value is accurate, and how likely the market...
This often depends on the industry, location, and size of the company. This figure is usually found in the non-operating expenses section of the income statement.Interest Expense –As with taxes, interest expense varies among companies and across industries. Some more capital intensive industries ...
Industry-specific factors: EBIT doesn't consider industry-specific factors such as regulatory changes, technological advances, or market trends, which can affect profitability. For instance, capital-intensive industries like manufacturing have higher depreciation expenses, which can reduce EBIT even if oper...
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 ...
Cash balance from investing activities may prove an important source to offset negative cash flows from operations. Capital-intensive industries require massive investments in fixed assets. If an entity continuously gives negative net cash flows from investing activities due to the purchase of fixed asse...
However, sometimes too much liquid assets could be negative as it could imply that the company is not employing capital efficiently to generate higher returns. Analyst need to look at this ratio from the industry in which the company operates. In capital intensive industries, the company might ...
Innovation is the foundation and core of competition for the development of knowledge-intensive services, with the exchange and collaboration of high-level human capital playing a key role in this process. In recent years, China's universities have continued to expand their enrollment, and the scal...
In industry, cryogenic rectification for separating xenon from other noble gases such as krypton and argon is an energy and capital intensive process. Here we show that a microporous metal–organic framework, namely Co3(HCOO)6 is capable of effective capture and separation of xenon from other ...