Circle Stores has net income of $41,000, a profit margin of 6.7 percent, and a return on assets of 9 percent. What is the capital intensity ratio?
A) 0.74
B) 0.86
C) 1.16
D) 1.34
E) 1.38

Name: Circle Stores has net income of $41,000, a profit margin of 6.7 percent, and a return on assets of 9 percent. What is the capital intensity ratio? A) 0.74 B) 0.86 C) 1.16 D) 1.34 E) 1.38
Brand: Quizplus
Rating: 4.8 (31 reviews)

Question

Quizplus · Accepted Answer

Capital intensity ratio = 1 / Return on assets = 1 / 0.09 = 1.11

Circle Stores Has Net Income of $41,000, a Profit Margin