Fastest non-Bullet moving object in sports? (self.SmarterEveryDay) submitted 9 months ago by martial___law
Fixed assets are retained in the business for long periods, and generally each year a proportion of their original cost will be written off against PROFITS for DEPRECIATION to reflect the diminishing value of the asset. In a BALANCE SHEET fixed assets are usually shown at cost less depreciation charged to date. Certain fixed assets such as property tend to appreciate in value (see APPRECIATION, definition 1) and need to be revalued periodically to keep their BALANCE SHEET values in line with market values.
Explanation of Depreciation to Fixed Assets. The Depreciation to Fixed Assets ratio measures how diligently the company is replacing its old fixed assets with replacements. Companies will often aquire fixed assets such as new buildings, processes and machinery, and automation with hopes of gaining increased sales over the lifespan of those assets.