Capital-intensive companies are large companies with more fixed assets than revenue from production and sales. Companies achieve this by reducing their investment in long-life devices. These assets include:

• Production area
• Earth;
• Your car fleet
• Heavy equipment
• Delivery vehicles.

A capital intensive company is one where there is considerable investment in fixed assets. Some companies have to be capital intensive in order to operate in that particular field. For example, a company that requires specialised equipment, and high-tech investments. Or a company where various vehicles are required and so a high investment is made so as to set up a fleet.

A capital-intensive company is one that relies heavily on substantial investments in physical assets, such as machinery, equipment, and infrastructure, to carry out its operations. These businesses require a significant upfront capital investment and tend to have high fixed costs associated with maintaining and upgrading their assets. Capital-intensive industries often include manufacturing, mining, telecommunications, and utilities, where sophisticated machinery and technology are essential for production.

While capital-intensive companies may face higher initial expenses, they often benefit from economies of scale and enhanced production efficiency over time. However, they are also more susceptible to economic downturns and changes in interest rates, as the cost of servicing debt and maintaining capital investments can become burdensome. The financial health of capital-intensive firms hinges on effectively managing these capital assets, optimizing production processes, and adapting to market fluctuations.