working capital intensity
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Joined: Thu Oct 31, 2013 9:58 am

working capital intensity

Postby » Sat Nov 23, 2013 1:38 am

asked in an interview by a rating agency.
Formula to calculate working capital intensity

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Finance Junkie
Posts: 83
Joined: Thu Jul 19, 2012 6:49 pm

working capital intensity

Postby shreyas » Thu Nov 28, 2013 5:06 am

WC intensity can be derived by taking the additional working capital
required for generating additional revenue. It helps us determine what
is more investment required in working capital for generating
additional sales or revenues.

So formula will be Change in wc to change in revenue.

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working capital intensity

Postby pradeeppdy » Fri Apr 04, 2014 7:31 am

It measures how well the company has deployed its assets in generating revenue . It is computed as a ratio of the total assets to sales revenue . Then It shows efficiency . The rising capital intensity increases the productivity of employees. Their standard of living is greater in the long run.

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