Fixedasset, also known as property, plant, and equipment (PPandE), is a term used in accountancy for assets and property which cannot easily be converted into cash.
This can be compared with current assets such as cash or bank accounts, which are described as liquid assets.
Fixedassets are among the most important assets that a company holds, for they represent major investments of financial resources.
Fixedassets are also very important to small business owners because they are one of the things that are examined most closely by prospective lenders.
Asset turnover ratios, remarked Tuller, "measure the efficiency with which a company uses its assets to generate sales; the higher the turnover, the more efficient the company." He noted, however, that fixedasset turnover ratios are not particularly useful to compute if the company under examination does not have a significant amount of hard assets.
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