Aged Assets

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.



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