Which one of the following ratios identifies the amount of assets a firm needs in order to generate $1 in sales?
A)current ratio
B)equity multiplier
C)retention ratio
D)capital intensity ratio
E)payout ratio

Question

Quizplus · Accepted Answer

The capital intensity ratio measures the amount of assets a company needs to generate a dollar in revenue. It is calculated by dividing total assets by total revenue. Therefore, D is the correct choice.

Which One of the Following Ratios Identifies the Amount of Assets