Capital-intensive


Also found in: Dictionary, Wikipedia.

Capital-intensive

Used to describe industries that require large investments in capital assets to produce their goods, such as the automobile industry. These firms require large profit margins and/or low costs of borrowing to survive.

Capital Intensive

Describing a company or industry requiring a great deal of capital to maintain operations. For example, the automobile industry is capital-intensive because, in order to make cars, it requires a lot of workers and expensive equipment that must be properly maintained. Another, smaller scale example is a dentist office, which requires expensive equipment and materials. In order to stay afloat, capital intensive companies need either consistently large profits or inexpensive credit.
References in periodicals archive ?
Its intent is to shift some of the tax burden from capital-intensive businesses to service-based ones, and also to out-of-state businesses that sell into Ohio.
The West's numerically dominant "pea santries" faded into small, government-subsidized minorities practicing capital-intensive and land-intensive agriculture.
With the addition of Palm OS connectivity, AvantCom has moved another step forward in providing the most efficient network for capital-intensive industries.
In the past two years, Matthews has sold several capital-intensive business units in order to focus on lower overhead and faster-growing segments.
CONWAY: A smooth transition is a critical issue for a capital-intensive company like United Technologies.
The need to rebuild the capital-intensive industrial base will create a pressure to reintroduce measures targeted at this sector of the economy.
VPS' Virtual Workspace gives lawyers access to a highly secure collaborative environment for creating, storing and retrieving documents and records without the commitment of a capital-intensive technology investment.
One of the goals of the group is to create reliability-focused programs at the PIMA International Management Conference each summer Our name expresses the contribution the critical support function of maintenance contributes to the bottom line of our capital-intensive industry, first, through reducing costs, second, through increasing plant capacity, and finally, through extending the life of our working assets.
With an extremely low capital-intensive model, we've been able to expand our network quickly and cost-effectively, resulting in improved performance and scalability for customers.
It said it's divesting capital-intensive divisions and using the funds to relieve debt and improve liquidity.
Although the proposed capital gains tax cut in the House Republican Contract with America has received much attention, a less noticed item in the contract could garner major tax savings for capital-intensive businesses.
4 /PRNewswire/ -- DNX Corporation (NASDAQ: DNXX) today announced that the company has decided to curtail development efforts on its capital-intensive, hemoglobin-based blood substitute program, a move that will dramatically cut the company's burn rate.