Aged Assets

AAA

DEFINITION of 'Aged Assets'

Equipment that has outlived its useful life. Aged assets might include equipment that is still functional, but is expensive to operate and maintain; equipment that still works, but breaks down frequently, disrupting operations; or equipment that is broken and is too expensive to repair. Proper management of aged assets is a significant issue in industries that rely heavily on equipment, such as the oil and natural gas industry.

INVESTOPEDIA EXPLAINS 'Aged Assets'

Not only is it expensive to maintain and replace aged assets, they can also create serious safety hazards and disrupt operations if they fail. Aged assets, particularly those used for defense, transportation, manufacturing and construction, can sometimes be cost-effectively remanufactured to make them useful and efficient again.



RELATED TERMS
  1. Operations Management

    Operations management refers to the administration of business ...
  2. Intangible Asset

    An asset that is not physical in nature. Corporate intellectual ...
  3. Tangible Asset

    Assets that have a physical form. Tangible assets include both ...
  4. Dangerous Asset

    An asset which, by its nature, creates a substantial risk of ...
  5. Asset

    1. A resource with economic value that an individual, corporation ...
  6. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses ...
Related Articles
  1. Investing In Medical Equipment Companies
    Options & Futures

    Investing In Medical Equipment Companies

  2. Intangible Assets Provide Real Value ...
    Markets

    Intangible Assets Provide Real Value ...

  3. Should computer software be classified ...
    Professionals

    Should computer software be classified ...

  4. What is property, plant and equipment, ...
    Investing

    What is property, plant and equipment, ...

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center