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. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses ...
  3. Intangible Asset

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

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

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

    1. A resource with economic value that an individual, corporation ...
RELATED FAQS
  1. Should computer software be classified as an intangible asset or part of property, ...

    In accounting terms, an intangible asset is something of value that is not of physical nature. On the other hand, property, ... Read Full Answer >>
  2. What is property, plant and equipment, and what does it mean?

    Property, plant and equipment (PP&E) is a term that describes an account on the balance sheet. The PP&E account ... Read Full Answer >>
Related Articles
  1. Options & Futures

    Investing In Medical Equipment Companies

    Learn the basics about medical equipment companies and how investing in them can benefit growth and value investors alike.
  2. Markets

    Intangible Assets Provide Real Value To Stocks

    Intangible assets don't appear on balance sheets, but they're crucial to judging a company's value.
  3. Stock Analysis

    How Boeing is More Than Just a Coach-Class Seat

    The number of market leaders that indisputably dominated their industry in 1916 and still do today is almost nonexistent — except for Boeing.
  4. Investing News

    What If Donald Sterling Ran Your Company?

    A chief executive officer can seem to have it all: power, influence and gravitas. But all of that hard-earned respectability — along with a company’s share price — can erode in the wake of a ...
  5. Personal Finance

    Airline Stocks Look Set To Soar

    This maligned sector is in better shape than most investors believe.

You May Also Like

Hot Definitions
  1. Asset Class

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same ...
  2. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  3. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  4. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  5. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  6. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
Trading Center