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.
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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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
This compares to Fitch's 3.25x to 3.5x leverage target for legacy WYN at the 'BBB-' rating, which included the benefit from more stable and less capital intensive recurring lodging franchise fees.
And no one can do it because, apparently, it's capital intensive. You do not need a permit for any Filipino corporation to conduct scientific investigation in Benham Rise because it is ours so that's not something that a consent has to be given by the government,' Roque then responded.
Long term prospects are positive; a marginal uptick in spending is expected in 2022 driven by the sanctioning of a second wave of capital intensive liquefaction projects.
The correlation coefficient between the capital intensive exports and the capital intensive imports, calculated for period 2003-2010, is approximately 0.6, meaning that the yearly variations of the two indicators have been interrelated.
Third, this study extends the research on industry comparisons by using industry-specific analyses to examine the predictability of Free Cash Flow in capital intensive versus non-capital intensive industries.
It is to improve pricing, improve return on assets by investing in higher return but more capital intensive asset classes and to be very disciplined about pursuing diversified investment strategies.
This study argues that while capital intensive service firms adopt entry modes with low resource commitments, knowledge intensive service firms prefer to employ high resource commitment entry modes.
The participants at the debate, organised by Oman Economic Review in cooperation with the Capital Market Authority (CMA), raised several other pertinent issues as well, including lack of crystal clear vision in education policies, apathy of bureaucracy that hampers growth of private sector and the inability of capital intensive industries (mainly the gas-based industries based in Sohar) in creating employment opportunities for Omani youths, which are vital in avoiding re-occurrence of labour unrest.
In particular, we are interested in the evolution of the main aggregates--output and unemployment--in the aftermath of the adoption of a new technology that is relatively more capital intensive than the former.
He said he could not give estimate of investment in the project before the study is completed but the project is capital intensive. The government offer a more generous production split of 45% for investors compared in CBM compared to 1% in oil.
Ian Smith, chief executive of the EEF in the West Midlands, said: "Our survey points to a shift in focus away from capital intensive investment into intangible areas.

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