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.
Shopify Inc
Physical assets are 1.1% of total assets, a light footprint. Capex is 0.84x depreciation while free cash flow yield is positive, which can mean an aging base that is still throwing off cash. ROIC is 15.2%, 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 81.96x.
Physical asset ratio
1.1%
Net PP&E plus inventory, divided by total assets. Above 50% is a heavy footprint.
Fixed asset turnover
81.96x
Revenue per dollar of the physical asset base.
Capex / D&A
0.84x
Above 1.0x means the physical base is being replaced or expanded.
Tangible book / share
$9.93
Assets minus goodwill, intangibles, and liabilities, per share.
Price / tangible book
17.95x
Price $178.14.
Fixed-charge coverage
—
EBITDA minus capex, divided by interest plus short-term debt.
FCF yield
0.9%
Latest free cash flow divided by current market cap ($221.95B).
ROIC
15.2%
After-tax operating income over equity plus debt minus cash.
Operating income / net PP&E is 10.41x.
Footprint and return
Turnover and reinvestment
| Year | Physical | FAT | Capex/D&A | TBV/sh | Coverage | FCF | ROIC | EBIT/PP&E |
|---|---|---|---|---|---|---|---|---|
| 2018 | 3.7% | 17.42x | 1.54x | $1.92 | -41.70x | -$32.22M | — | -1.49x |
| 2019 | 7.1% | 6.41x | 1.75x | $2.24 | -2.25x | $8.22M | — | -0.57x |
| 2020 | 2.7% | 13.85x | 0.60x | $4.82 | 14.12x | $382.96M | 9.7% | 0.43x |
| 2021 | 2.3% | 15.28x | 0.77x | $8.35 | 164.36x | $484.92M | 5.5% | 0.89x |
| 2022 | 4.5% | 11.52x | 0.54x | $4.75 | -33.63x | -$186.00M | — | -1.69x |
| 2023 | 1.5% | 48.03x | 0.56x | $6.65 | — | $905.00M | -19.4% | -9.65x |
| 2024 | 1.2% | 63.43x | 0.53x | $8.52 | — | $1.60B | 13.5% | 7.68x |
| 2025 | 1.1% | 81.96x | 0.84x | $9.93 | — | $2.01B | 15.2% | 10.41x |
- 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: $141.00M
Inventory: $21.00M
Total assets: $15.19B
Goodwill: $491.00M
Intangibles: $30.00M
Liabilities: $1.72B
Tangible book: $12.95B
Shares: 1,304,953,000
Revenue: $11.56B
Capex: $26.00M
D&A: $31.00M
EBITDA: $1.93B
Interest: —
Short-term debt: $17.00M
Free cash flow: $2.01B
Operating income: $1.47B
Invested capital: $7.89B
Tax rate: 18.4%