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Physical asset

  • Writer: Ade McCormack
    Ade McCormack
  • Jul 28
  • 1 min read

What is a Physical asset?

A physical asset is something tangible that shareholders and analysts perceive as valuable and thus contribute to the worth of the organisation. Examples include: vehicles, machinery, land, property and new technology.


But these assets are not true assets as in some cases they are depreciating in value. And even where an asset is growing by virtue of its existence, eg. land and property, it becomes a liability if it cannot be sold quickly should the organisation run into financial difficulties.


Intelligent organisations minimise the holding of such ‘assets’ and look to acquire these as a service. So they can scale up and down their consumption, including terminating the service agreement, as the fortunes of the organisation dictate.


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