Enter the total company asset value ($) and the total company revenue ($) into the Capital Intensity Ratio Calculator. The calculator will evaluate and display the Capital Intensity Ratio.
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Capital Intensity Ratio Formula
The following formula is used to calculate the Capital Intensity Ratio.
CIR = AV / R * 100
- Where CIR is the Capital Intensity Ratio (%)
- AV is the total company asset value ($)
- R is the total company revenue ($)
How to Calculate Capital Intensity Ratio?
The following example problems outline how to calculate Capital Intensity Ratio.
Example Problem #1:
- First, determine the total company asset value ($).
- The total company asset value ($) is given as: 3,000.
- Next, determine the total company revenue ($).
- The total company revenue ($) is provided as: 6,000.
- Finally, calculate the Capital Intensity Ratio using the equation above:
CIR = AV / R * 100
The values given above are inserted into the equation below and the solution is calculated:
CIR = 3,000 / 6,000 * 100 = 50.00 (%)
Example Problem #2:
For this problem, the variables required are provided below:
total company asset value ($) = 6,000
total company revenue ($) = 12,000
Test your knowledge using the equation and check your answer with the calculator above.
CIR = AV / R * 100 = ?
