What is capital productivity?

Answer by  Brandydog (631)

A business with good capital productivity does not have to be large. All capital productivity means is that there is a high ratio of profit to initial investment. A small business may actually find it easier to achieve high capital productivity though micromanagement

Answer by  NobodysHome (385)

Capital productivity refers to the return that an investor gets from the "capital" - money - that they put into a specific investment. In other words, the higher the capital productivity, the more the investor gets for their money.

Answer by  noguf (162)

It is the way in which capital (long-term assets like machines/buildings) are put to use for a certain level of labour and technical knowledge to make goods and services. For example if you paid the same for two machines, the one that you use to do more is more productive.

Answer by  LeheckaG (1826)

Capital productivity is an economic measure of how efficiently a business or (local/national/state)economy utilizes capital to produce income from products or services. For instance: U.S. annual-GDP/Gross-Domestic-Product compared with total-U.S.-capital-assets/investment.