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.

Related terms

The whole glossary · Investing tools