Often referred to as the 'new normal', capital intensity has a wide range of effects on a company. It is the weight of its assets and investments. The more assets an organization has, the higher its capital intensity. It is also a measure of how much money the organization has invested in fixed assets.
The best way to measure capital intensity is to compare the amount of capital it takes to purchase fixed assets with the amount of money it takes to pay the costs of those assets. Capital intensive Contract Research Organization typically have high depreciation costs and high non-operating costs. However, it is also important to note that capital-intensive intensive businesses can earn higher profits in the long run.
An example of a Contract Research Organization is Laboratory Corporation Of America Holdings. The company's main function is to refine the latest drugs and devices for the pharmaceutical industry. The company is also involved in the biotech and med-tech industries. Its headquarters are located in Boston, Massachusetts. The company has been expanding across Europe for the past eight years. Its services are closely related to patient recruitment and data management.
Another example of a CRO is KCR. It is a boutique international full-service contract research organization. It operates in three main service areas: patient data management, patient recruitment, and clinical trials. The company prides itself on its human approach.
The other big-name CRO is Pra-Health Sciences, Inc., a pharmaceutical contract research organization that performs clinical trials 30.0% faster than an in-house team. Its clinical trials result in average time savings of four to five months.