Capital Efficiencies

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Capital Efficiencies

What is Capital Efficiencies?

The traditional definition of capital efficiency is the ratio between the amount of money a firm spends on its rising revenue and the amount of money it makes in profits. This indicates that a corporation has a 1:1 ratio if it earns $1 for every $1 spent. A corporation is more capital-efficient and makes more money when the ratio is higher.


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