Question

Ivanhoe Metal Works has been able to generate net sales of $16,075,500 on assets of $11,027,793....

Ivanhoe Metal Works has been able to generate net sales of $16,075,500 on assets of $11,027,793. What is the firm’s capital intensity ratio? (Round answer to 2 decimal places e.g. 17.54%.)

Capitol intensity ratio %

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Answer #1

Capital intensity ratio is calculated using the below formula:

= Total assets/ Sales

= $11,027,793/ $16,075,500

= 0.686*100

= 68.60%.

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