capital intensive


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Related to capital intensive: Labour Intensive

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.

capital intensive

Of or relating to a firm or industry that requires large amounts of fixed assets and/or cash to operate. Steel, automobile manufacturing, and mining are capital intensive industries.
References in periodicals archive ?
Some analysts (Tole, McCord, & Pugh, 1992) claim that Free Cash Flow better captures capital intensity, and hence is a better measure of performance in capital intensive industries.
These companies have been classified on the basis of capital/labor ratio used by Edward (2001), [thereby consisting of capital, intermediate capital intensive, labor, ultra labor intensive industries).
IT investments can allow capital intensive manufacturing companies to get the maximum return from their capital equipment investments, but only if the systems are available and employees have confidence in their integrity.
Third, mills participating in PIMA's 2002 Manufacturing Reliability Survey indicated they experienced an improvement in product quality as a result of their reliability and maintenance improvement efforts, another significant benefit to any capital intensive organization.
The life reinsurance business is a highly capital intensive business that typically requires access to the capital markets for collateral and to fund growth.
Gap 3--The process is capital intensive and complicated: A modern chemical pulp mill cannot exist without systems for cooking, washing, recovering, and re-using chemicals.
First, there is a significant barrier to entry, as life reinsurance is very capital intensive.
In the mid-1970s, the global pulp and paper industry began to realize that the energy conversion equipment of that time was inefficient, capital intensive, and had safety and environmental issues.
Leading reliability authority Terry O'Hanlon, will deliver the Summit's first keynote where he will discuss challenges of the aging workforce and skills shortage facing today's capital intensive industries.
Leonetti: "the rework and flood programs using existing wells provides more profit potential to investors than new drilling; it is less capital intensive, there is a higher probability of success as a result of historical records of oil production, and, the return on investment is achieved earlier.
Technical profits are likely to improve slightly due to less capital intensive new business, while investment returns should nearly double given the significant expansion in the shareholders' funds.
The ratings are also based on Intelsat's significant leverage on a pro forma basis for the acquisition, competition from lower cost terrestrial fiber optic cable, and the capital intensive nature of its business.

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