Working capital intensive industries

2020-02-25 22:29

However, every industry has its own set of dynamics that influences its working capital cycle. For example, aviation sector, real estate sector, gems& jewellery, engineering, power sector, sugar sector and textile sector are highly capital intensive.Jun 25, 2014 Capital intensive refers to the production that requires higher capital investment such as financial resources, sophisticated machinery, more automated machines, the latest equipment, etc. Capital intensive industries pose higher barriers to entry as they require more investment in equipment and machinery to produce goods and services. working capital intensive industries

A capital intensive industry or company, is one whose major costs result from investments in equipment, machinery, or other expensive capital assets. For capital intensive companies, asset structure is represented largely by assets such as land, buildings, plants, equipment, vehicles, or heavy equipment.

Capitalintensive industries exist in a world of painfully low margins. The pressure to realize profits is typically so intense that many management teams struggle just to keep return on capital employed (ROCE) above the cost of capital. Airlines must regularly replace their fleets of aircraft, and auto manufacturers invest massive amounts of capital in research and development in addition to equipment required to manufacture their products. Other capitalintensive industries include computers, healthcare, construction and hospitality.working capital intensive industries Sep 19, 2016 Generally following will be factors considering for working capital you can co relate to the industry, Working capital requirement is influenced by various factors. In fact, any and every activity of a company affects the working capital require