![]() ![]() To find companies with low capital intensity set the slider from 90% to 100%. Graph and download economic data for Manufacturing Sector: Capital Intensity (MPU9900082) from 1987 to 2021 about productivity, sector, capital, manufacturing, and USA. How to select the companies with low capital intensity (a low Capex on PPE value) ![]() Higher Capex also means lower Free Cash Flow (Operating cash flow – Capex) generation and perhaps lower dividends as companies don’t have the cash to pay dividends if they are investing more in the business. The higher the value of the Capex on PPE ratio the more capital intensive the company is.Ĭompanies with an increasing (from year to year) ratio may be moving to be more capital intensive and studies have shown that they underperform the market. Youll get a detailed solution from a subject matter expert that helps you learn core concepts. ![]() This ratio shows you how capital intensive a company is. What does it mean if a companys capital intensity ratio is 2.4 the firm requires 2. Capex on PPE = Capital Expenditure (Capex) / Property, Plant and Equipment (PPE) ![]()
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