Question
Read Appendix 1 in Textbook (FINANCIAL RATIO ANALYSIS). Then do Internet research to calculate capital intensity ratio for General Motors company in 2017. Then do
Read Appendix 1 in Textbook (FINANCIAL RATIO ANALYSIS). Then do Internet research to calculate capital intensity ratio for General Motors company in 2017. Then do the same for Google company in 2017. Then reflect on capital intensity ratio for both companies, and identify one positive point and one negative point about more capital intensive firms compared to less capital intensive firms.
Do not exceed 1 page in your write-up (Times Roman, Font 12, double spaced). In your paper, submit your numbers for both firms in 2017 on (i) Capital intensity ratio, (ii) Sales, and (iii) total assets.
Hint: Capital intensity ratio is the reciprocal of total asset turnover. Read the section under Total Asset Turnover.
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