Capital intensity (Capex/revenue)
How much of each unit of revenue is spent on property, plant and equipment.
Capital intensity determines how much of the profit an owner ever gets to keep rather than reinvest just to stand still.
How it is computed here
Capital expenditure / revenue x 100
Measured over the latest complete fiscal year, as filed. Filed under risk. Neither a high nor a low reading is good on its own, so it is never coloured as one.
No published threshold exists for this figure, so this page prints none. Read it against the company's own history and its peers instead.
When it misleads
- Low is not automatically good: under-investment shows up here as a virtue and later as decline.
- Maintenance and growth spending are not separated in filed statements.
- There is no cross-industry threshold worth printing. The peer percentile against companies in the same industry is the only defensible reading.
Questions
How is capital intensity calculated?
Capital expenditure / revenue x 100. Measured over the latest complete fiscal year, as filed.
What does capital intensity tell a value investor?
Capital intensity determines how much of the profit an owner ever gets to keep rather than reinvest just to stand still.
When does capital intensity mislead?
Low is not automatically good: under-investment shows up here as a virtue and later as decline. Maintenance and growth spending are not separated in filed statements. There is no cross-industry threshold worth printing. The peer percentile against companies in the same industry is the only defensible reading.