Capital Intensity
Score how much of a company is physical plant, inventory, and equipment, whether that base is being maintained, and whether the shares have tangible backing.
Pearson PLC ADR
Physical assets are 4.3% of total assets, a light footprint. Capex is 0.05x depreciation while free cash flow yield is positive, which can mean an aging base that is still throwing off cash. ROIC is 9.5%, above an 8% cost-of-capital hurdle.
Technology and communication names are often asset-light, with fixed-asset turnover above 5x. This name is at 17.03x.
Physical asset ratio
4.3%Physical asset ratio · 2025-12-31(Net PP&E + inventory) / total assetsNet PP&E$210.00MpropertyPlantEquipmentInventory$65.88MinventoryTotal assets$6.45BtotalAssetsResult 4.3%
Net PP&E plus inventory, divided by total assets. Above 50% is a heavy footprint.
Fixed asset turnover
17.03xFixed asset turnover · 2025-12-31Revenue / net PP&ERevenue$3.58BtotalRevenueNet PP&E$210.00MpropertyPlantEquipmentResult 17.03x
Revenue per dollar of the physical asset base.
Capex / D&A
0.05xCapex / D&A · 2025-12-31Capital expenditures / depreciation and amortizationCapex$28.36McapitalExpendituresD&A$571.00MdepreciationAndAmortizationResult 0.05x
Above 1.0x means the physical base is being replaced or expanded.
Tangible book / share
$0.99Tangible book / share · 2025-12-31(Total assets − goodwill − intangibles − liabilities) / sharesTotal assets$6.45BtotalAssetsGoodwill$2.42BgoodWillIntangibles$582.97MintangibleAssetsLiabilities$2.79BtotalLiabTangible book$652.85MShares660,300,000commonStockSharesOutstandingResult $0.99
Assets minus goodwill, intangibles, and liabilities, per share.
Price / tangible book
17.57xPrice / tangible bookPrice / tangible book per sharePrice$17.37Latest quoteTangible book / share$0.992025-12-31Result 17.57x
Price $17.37.
Fixed-charge coverage
5.56xFixed-charge coverage · 2025-12-31(EBITDA − capex) / (interest + short-term debt)EBITDA$1.10BebitdaCapex$28.36McapitalExpendituresInterest$69.44MinterestExpenseShort-term debt$123.89MshortTermDebtEBITDA − capex$1.07BPrincipal due is short-term debt.Result 5.56x
EBITDA minus capex, divided by interest plus short-term debt.
FCF yield
6.1%Free cash flow yield · 2025-12-31Latest free cash flow / current market capFree cash flow$646.51MfreeCashFlowMarket cap$10.52BMarketCapitalizationResult 6.1%
Latest free cash flow divided by current market cap ($10.52B).
ROIC
9.5%ROIC · 2025-12-31Operating income × (1 − tax rate) / (equity + debt − cash)Operating income$618.15MoperatingIncomeTax expense$118.35MincomeTaxExpensePretax income$446.99MincomeBeforeTaxTax rate26.5%Equity$3.64BtotalStockholderEquityDebt$1.48BshortLongTermDebtTotalCash$332.41McashInvested capital$4.79BResult 9.5%
After-tax operating income over equity plus debt minus cash.
Operating income / net PP&E is 2.94x.
Footprint and return
Turnover and reinvestment
| Year | Physical | FAT | Capex/D&A | TBV/sh | Coverage | FCF | ROIC | EBIT/PP&E |
|---|---|---|---|---|---|---|---|---|
| 2018 | 5.1%Physical asset ratio · 2018-12-31(Net PP&E + inventory) / total assetsNet PP&E$237.00MpropertyPlantEquipmentInventory$164.00MinventoryTotal assets$7.91BtotalAssetsResult 5.1% | 17.42xFixed asset turnover · 2018-12-31Revenue / net PP&ERevenue$4.13BtotalRevenueNet PP&E$237.00MpropertyPlantEquipmentResult 17.42x | 0.79xCapex / D&A · 2018-12-31Capital expenditures / depreciation and amortizationCapex$200.00McapitalExpendituresD&A$253.00MdepreciationAndAmortizationResult 0.79x | $1.95Tangible book / share · 2018-12-31(Total assets − goodwill − intangibles − liabilities) / sharesTotal assets$7.91BtotalAssetsGoodwill$2.11BgoodWillIntangibles$898.00MintangibleAssetsLiabilities$3.38BtotalLiabTangible book$1.52BShares778,700,000commonStockSharesOutstandingResult $1.95 | 4.10xFixed-charge coverage · 2018-12-31(EBITDA − capex) / (interest + short-term debt)EBITDA$749.00MebitdaCapex$200.00McapitalExpendituresInterest$91.00MinterestExpenseShort-term debt$43.00MshortLongTermDebtEBITDA − capex$549.00MPrincipal due is the current portion of debt.Result 4.10x | $262.00MFree cash flow · 2018-12-31Reported free cash flowOperating cash flow$462.00MtotalCashFromOperatingActivitiesCapex$200.00McapitalExpendituresFree cash flow$262.00MfreeCashFlowFree cash flow is the amount reported on the cash-flow statement.Result $262.00M | 11.8%ROIC · 2018-12-31Operating income × (1 − tax rate) / (equity + debt − cash)Operating income$553.00MoperatingIncomeTax expense-$92.00MincomeTaxExpensePretax income$498.00MincomeBeforeTaxTax rate0.0%Equity$4.52BtotalStockholderEquityDebt$720.00MshortLongTermDebtTotalCash$568.00McashInvested capital$4.67BResult 11.8% | 2.33xEBIT / PP&E · 2018-12-31Operating income / net PP&EOperating income$553.00MoperatingIncomeNet PP&E$237.00MpropertyPlantEquipmentResult 2.33x |
| 2019 | 10.3%Physical asset ratio · 2019-12-31(Net PP&E + inventory) / total assetsNet PP&E$618.00MpropertyPlantEquipmentInventory$169.00MinventoryTotal assets$7.65BtotalAssetsResult 10.3% | 6.26xFixed asset turnover · 2019-12-31Revenue / net PP&ERevenue$3.87BtotalRevenueNet PP&E$618.00MpropertyPlantEquipmentResult 6.26x | 0.50xCapex / D&A · 2019-12-31Capital expenditures / depreciation and amortizationCapex$193.00McapitalExpendituresD&A$389.00MdepreciationAndAmortizationResult 0.50x | $1.83Tangible book / share · 2019-12-31(Total assets − goodwill − intangibles − liabilities) / sharesTotal assets$7.65BtotalAssetsGoodwill$2.14BgoodWillIntangibles$761.00MintangibleAssetsLiabilities$3.33BtotalLiabTangible book$1.42BShares777,500,000commonStockSharesOutstandingResult $1.83 | 5.07xFixed-charge coverage · 2019-12-31(EBITDA − capex) / (interest + short-term debt)EBITDA$634.00MebitdaCapex$193.00McapitalExpendituresInterest$84.00MinterestExpenseShort-term debt$3.00MshortLongTermDebtEBITDA − capex$441.00MPrincipal due is the current portion of debt.Result 5.07x | $176.00MFree cash flow · 2019-12-31Reported free cash flowOperating cash flow$369.00MtotalCashFromOperatingActivitiesCapex$193.00McapitalExpendituresFree cash flow$176.00MfreeCashFlowFree cash flow is the amount reported on the cash-flow statement.Result $176.00M | 5.8%ROIC · 2019-12-31Operating income × (1 − tax rate) / (equity + debt − cash)Operating income$275.00MoperatingIncomeTax expense-$34.00MincomeTaxExpensePretax income$232.00MincomeBeforeTaxTax rate0.0%Equity$4.31BtotalStockholderEquityDebt$826.00MlongTermDebt + shortLongTermDebtCash$437.00McashInvested capital$4.70BReported total debt was more than 1.5× long-term debt plus the current portion, so invested capital uses those two lines.Result 5.8% | 0.44xEBIT / PP&E · 2019-12-31Operating income / net PP&EOperating income$275.00MoperatingIncomeNet PP&E$618.00MpropertyPlantEquipmentResult 0.44x |
| 2020 | 8.6%Physical asset ratio · 2020-12-31(Net PP&E + inventory) / total assetsNet PP&E$515.00MpropertyPlantEquipmentInventory$129.00MinventoryTotal assets$7.45BtotalAssetsResult 8.6% | 6.60xFixed asset turnover · 2020-12-31Revenue / net PP&ERevenue$3.40BtotalRevenueNet PP&E$515.00MpropertyPlantEquipmentResult 6.60x | 0.22xCapex / D&A · 2020-12-31Capital expenditures / depreciation and amortizationCapex$134.00McapitalExpendituresD&A$597.00MdepreciationAndAmortizationResult 0.22x | $1.84Tangible book / share · 2020-12-31(Total assets − goodwill − intangibles − liabilities) / sharesTotal assets$7.45BtotalAssetsGoodwill$2.09BgoodWillIntangibles$648.00MintangibleAssetsLiabilities$3.32BtotalLiabTangible book$1.39BShares755,400,000commonStockSharesOutstandingResult $1.84 | 2.09xFixed-charge coverage · 2020-12-31(EBITDA − capex) / (interest + short-term debt)EBITDA$829.00MebitdaCapex$134.00McapitalExpendituresInterest$79.00MinterestExpenseShort-term debt$254.00MshortTermDebtEBITDA − capex$695.00MPrincipal due is short-term debt.Result 2.09x | $255.00MFree cash flow · 2020-12-31Reported free cash flowOperating cash flow$389.00MtotalCashFromOperatingActivitiesCapex$134.00McapitalExpendituresFree cash flow$255.00MfreeCashFlowFree cash flow is the amount reported on the cash-flow statement.Result $255.00M | 8.8%ROIC · 2020-12-31Operating income × (1 − tax rate) / (equity + debt − cash)Operating income$411.00MoperatingIncomeTax expense$50.00MincomeTaxExpensePretax income$380.00MincomeBeforeTaxTax rate13.2%Equity$4.13BtotalStockholderEquityDebt$1.04BlongTermDebt + shortLongTermDebtCash$1.10BcashInvested capital$4.07BReported total debt was more than 1.5× long-term debt plus the current portion, so invested capital uses those two lines.Result 8.8% | 0.80xEBIT / PP&E · 2020-12-31Operating income / net PP&EOperating income$411.00MoperatingIncomeNet PP&E$515.00MpropertyPlantEquipmentResult 0.80x |
| 2021 | 6.3%Physical asset ratio · 2021-12-31(Net PP&E + inventory) / total assetsNet PP&E$366.00MpropertyPlantEquipmentInventory$98.00MinventoryTotal assets$7.34BtotalAssetsResult 6.3% | 9.37xFixed asset turnover · 2021-12-31Revenue / net PP&ERevenue$3.43BtotalRevenueNet PP&E$366.00MpropertyPlantEquipmentResult 9.37x | 0.34xCapex / D&A · 2021-12-31Capital expenditures / depreciation and amortizationCapex$176.00McapitalExpendituresD&A$515.74MdepreciationAndAmortizationResult 0.34x | $1.99Tangible book / share · 2021-12-31(Total assets − goodwill − intangibles − liabilities) / sharesTotal assets$7.34BtotalAssetsGoodwill$2.15BgoodWillIntangibles$624.00MintangibleAssetsLiabilities$3.06BtotalLiabTangible book$1.51BShares759,100,000commonStockSharesOutstandingResult $1.99 | 3.70xFixed-charge coverage · 2021-12-31(EBITDA − capex) / (interest + short-term debt)EBITDA$748.74MebitdaCapex$176.00McapitalExpendituresInterest$68.00MinterestExpenseShort-term debt$87.00MshortLongTermDebtEBITDA − capex$572.74MPrincipal due is the current portion of debt.Result 3.70x | $150.00MFree cash flow · 2021-12-31Reported free cash flowOperating cash flow$326.00MtotalCashFromOperatingActivitiesCapex$176.00McapitalExpendituresFree cash flow$150.00MfreeCashFlowFree cash flow is the amount reported on the cash-flow statement.Result $150.00M | 4.5%ROIC · 2021-12-31Operating income × (1 − tax rate) / (equity + debt − cash)Operating income$183.00MoperatingIncomeTax expense-$1.00MincomeTaxExpensePretax income$177.00MincomeBeforeTaxTax rate0.0%Equity$4.27BtotalStockholderEquityDebt$767.00MlongTermDebt + shortLongTermDebtCash$937.00McashInvested capital$4.10BReported total debt was more than 1.5× long-term debt plus the current portion, so invested capital uses those two lines.Result 4.5% | 0.50xEBIT / PP&E · 2021-12-31Operating income / net PP&EOperating income$183.00MoperatingIncomeNet PP&E$366.00MpropertyPlantEquipmentResult 0.50x |
| 2022 | 5.7%Physical asset ratio · 2022-12-31(Net PP&E + inventory) / total assetsNet PP&E$310.00MpropertyPlantEquipmentInventory$105.00MinventoryTotal assets$7.31BtotalAssetsResult 5.7% | 12.39xFixed asset turnover · 2022-12-31Revenue / net PP&ERevenue$3.84BtotalRevenueNet PP&E$310.00MpropertyPlantEquipmentResult 12.39x | 0.26xCapex / D&A · 2022-12-31Capital expenditures / depreciation and amortizationCapex$147.00McapitalExpendituresD&A$559.04MdepreciationAndAmortizationResult 0.26x | $1.65Tangible book / share · 2022-12-31(Total assets − goodwill − intangibles − liabilities) / sharesTotal assets$7.31BtotalAssetsGoodwill$2.48BgoodWillIntangibles$697.00MintangibleAssetsLiabilities$2.91BtotalLiabTangible book$1.22BShares742,000,000commonStockSharesOutstandingResult $1.65 | 5.65xFixed-charge coverage · 2022-12-31(EBITDA − capex) / (interest + short-term debt)EBITDA$938.04MebitdaCapex$147.00McapitalExpendituresInterest$69.00MinterestExpenseShort-term debt$71.00MshortLongTermDebtEBITDA − capex$791.04MPrincipal due is the current portion of debt.Result 5.65x | $214.00MFree cash flow · 2022-12-31Reported free cash flowOperating cash flow$361.00MtotalCashFromOperatingActivitiesCapex$147.00McapitalExpendituresFree cash flow$214.00MfreeCashFlowFree cash flow is the amount reported on the cash-flow statement.Result $214.00M | 4.6%ROIC · 2022-12-31Operating income × (1 − tax rate) / (equity + debt − cash)Operating income$271.00MoperatingIncomeTax expense$79.00MincomeTaxExpensePretax income$322.00MincomeBeforeTaxTax rate24.5%Equity$4.40BtotalStockholderEquityDebt$610.00MlongTermDebt + shortLongTermDebtCash$558.00McashAndShortTermInvestmentsInvested capital$4.45BReported total debt was more than 1.5× long-term debt plus the current portion, so invested capital uses those two lines.Result 4.6% | 0.87xEBIT / PP&E · 2022-12-31Operating income / net PP&EOperating income$271.00MoperatingIncomeNet PP&E$310.00MpropertyPlantEquipmentResult 0.87x |
| 2023 | 4.6%Physical asset ratio · 2023-12-31(Net PP&E + inventory) / total assetsNet PP&E$217.00MpropertyPlantEquipmentInventory$91.00MinventoryTotal assets$6.73BtotalAssetsResult 4.6% | 16.93xFixed asset turnover · 2023-12-31Revenue / net PP&ERevenue$3.67BtotalRevenueNet PP&E$217.00MpropertyPlantEquipmentResult 16.93x | 0.23xCapex / D&A · 2023-12-31Capital expenditures / depreciation and amortizationCapex$126.00McapitalExpendituresD&A$543.00MdepreciationAndAmortizationResult 0.23x | $1.25Tangible book / share · 2023-12-31(Total assets − goodwill − intangibles − liabilities) / sharesTotal assets$6.73BtotalAssetsGoodwill$2.43BgoodWillIntangibles$657.00MintangibleAssetsLiabilities$2.74BtotalLiabTangible book$897.00MShares717,300,000commonStockSharesOutstandingResult $1.25 | 15.17xFixed-charge coverage · 2023-12-31(EBITDA − capex) / (interest + short-term debt)EBITDA$1.10BebitdaCapex$126.00McapitalExpendituresInterest$61.00MinterestExpenseShort-term debt$3.00MshortLongTermDebtEBITDA − capex$971.00MPrincipal due is the current portion of debt.Result 15.17x | $399.00MFree cash flow · 2023-12-31Reported free cash flowOperating cash flow$525.00MtotalCashFromOperatingActivitiesCapex$126.00McapitalExpendituresFree cash flow$399.00MfreeCashFlowFree cash flow is the amount reported on the cash-flow statement.Result $399.00M | 9.0%ROIC · 2023-12-31Operating income × (1 − tax rate) / (equity + debt − cash)Operating income$498.00MoperatingIncomeTax expense$113.00MincomeTaxExpensePretax income$493.00MincomeBeforeTaxTax rate22.9%Equity$3.97BtotalStockholderEquityDebt$614.00MlongTermDebt + shortLongTermDebtCash$312.00McashInvested capital$4.28BReported total debt was more than 1.5× long-term debt plus the current portion, so invested capital uses those two lines.Result 9.0% | 2.29xEBIT / PP&E · 2023-12-31Operating income / net PP&EOperating income$498.00MoperatingIncomeNet PP&E$217.00MpropertyPlantEquipmentResult 2.29x |
| 2024 | 4.2%Physical asset ratio · 2024-12-31(Net PP&E + inventory) / total assetsNet PP&E$216.00MpropertyPlantEquipmentInventory$74.00MinventoryTotal assets$6.89BtotalAssetsResult 4.2% | 16.44xFixed asset turnover · 2024-12-31Revenue / net PP&ERevenue$3.55BtotalRevenueNet PP&E$216.00MpropertyPlantEquipmentResult 16.44x | 0.24xCapex / D&A · 2024-12-31Capital expenditures / depreciation and amortizationCapex$124.00McapitalExpendituresD&A$526.00MdepreciationAndAmortizationResult 0.24x | $1.50Tangible book / share · 2024-12-31(Total assets − goodwill − intangibles − liabilities) / sharesTotal assets$6.89BtotalAssetsGoodwill$2.44BgoodWillIntangibles$589.00MintangibleAssetsLiabilities$2.84BtotalLiabTangible book$1.03BShares684,000,000commonStockSharesOutstandingResult $1.50 | 3.01xFixed-charge coverage · 2024-12-31(EBITDA − capex) / (interest + short-term debt)EBITDA$1.12BebitdaCapex$124.00McapitalExpendituresInterest$79.00MinterestExpenseShort-term debt$250.00MshortLongTermDebtEBITDA − capex$991.00MPrincipal due is the current portion of debt.Result 3.01x | $503.00MFree cash flow · 2024-12-31Reported free cash flowOperating cash flow$627.00MtotalCashFromOperatingActivitiesCapex$124.00McapitalExpendituresFree cash flow$503.00MfreeCashFlowFree cash flow is the amount reported on the cash-flow statement.Result $503.00M | 10.4%ROIC · 2024-12-31Operating income × (1 − tax rate) / (equity + debt − cash)Operating income$541.00MoperatingIncomeTax expense$75.00MincomeTaxExpensePretax income$510.00MincomeBeforeTaxTax rate14.7%Equity$4.04BtotalStockholderEquityDebt$955.00MlongTermDebt + shortLongTermDebtCash$543.00McashInvested capital$4.45BReported total debt was more than 1.5× long-term debt plus the current portion, so invested capital uses those two lines.Result 10.4% | 2.50xEBIT / PP&E · 2024-12-31Operating income / net PP&EOperating income$541.00MoperatingIncomeNet PP&E$216.00MpropertyPlantEquipmentResult 2.50x |
| 2025 | 4.3%Physical asset ratio · 2025-12-31(Net PP&E + inventory) / total assetsNet PP&E$210.00MpropertyPlantEquipmentInventory$65.88MinventoryTotal assets$6.45BtotalAssetsResult 4.3% | 17.03xFixed asset turnover · 2025-12-31Revenue / net PP&ERevenue$3.58BtotalRevenueNet PP&E$210.00MpropertyPlantEquipmentResult 17.03x | 0.05xCapex / D&A · 2025-12-31Capital expenditures / depreciation and amortizationCapex$28.36McapitalExpendituresD&A$571.00MdepreciationAndAmortizationResult 0.05x | $0.99Tangible book / share · 2025-12-31(Total assets − goodwill − intangibles − liabilities) / sharesTotal assets$6.45BtotalAssetsGoodwill$2.42BgoodWillIntangibles$582.97MintangibleAssetsLiabilities$2.79BtotalLiabTangible book$652.85MShares660,300,000commonStockSharesOutstandingResult $0.99 | 5.56xFixed-charge coverage · 2025-12-31(EBITDA − capex) / (interest + short-term debt)EBITDA$1.10BebitdaCapex$28.36McapitalExpendituresInterest$69.44MinterestExpenseShort-term debt$123.89MshortTermDebtEBITDA − capex$1.07BPrincipal due is short-term debt.Result 5.56x | $646.51MFree cash flow · 2025-12-31Reported free cash flowOperating cash flow$674.88MtotalCashFromOperatingActivitiesCapex$28.36McapitalExpendituresFree cash flow$646.51MfreeCashFlowFree cash flow is the amount reported on the cash-flow statement.Result $646.51M | 9.5%ROIC · 2025-12-31Operating income × (1 − tax rate) / (equity + debt − cash)Operating income$618.15MoperatingIncomeTax expense$118.35MincomeTaxExpensePretax income$446.99MincomeBeforeTaxTax rate26.5%Equity$3.64BtotalStockholderEquityDebt$1.48BshortLongTermDebtTotalCash$332.41McashInvested capital$4.79BResult 9.5% | 2.94xEBIT / PP&E · 2025-12-31Operating income / net PP&EOperating income$618.15MoperatingIncomeNet PP&E$210.00MpropertyPlantEquipmentResult 2.94x |
- Receivables are larger than the physical asset base, so a finance or credit book may sit outside the physical ratio and inside the debt used for coverage.
- Principal due is short-term debt, the amount reported as due within a year.
Latest year inputs (2025)
Net PP&E: $210.00M
Inventory: $65.88M
Total assets: $6.45B
Goodwill: $2.42B
Intangibles: $582.97M
Liabilities: $2.79B
Tangible book: $652.85M
Shares: 660,300,000
Revenue: $3.58B
Capex: $28.36M
D&A: $571.00M
EBITDA: $1.10B
Interest: $69.44M
Short-term debt: $123.89M
Free cash flow: $646.51M
Operating income: $618.15M
Invested capital: $4.79B
Tax rate: 26.5%