R&D intensity
Research and development spending as a share of revenue.
Formula
R&D intensity = R&D expense ÷ Revenue
How to read it
Carries a small weight in the competitive-position grade, which scores 14% and above best.
How to use it
Compare within an industry: how much each company reinvests in what comes next.
Limitations
Missing — not zero — for companies that file no R&D line, such as most retailers. Spending is an input, not a result.
Also called: r&d, research and development.