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Definition of 'Fixed Capital'
Assets or capital investments that are needed to start up and conduct business, even at a minimal stage. These assets are considered fixed in that they are not used up in the actual production of a good or service, but have a reusable value. Fixed-capital investments are typically depreciated on the company’s accounting statements over a long period of time, up to 20 years or more.
Examples include factories, office buildings, computer servers, insurance policies, legal contracts and manufacturing equipment – anything that is not continually purchased in the course of production of a good or service.
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Investopedia explains 'Fixed Capital'
The amount of fixed capital needed to set up a business is quite variable, especially from industry to industry. Some lines of business, by their nature, require high fixed-capital investment. Common examples would include industrial manufacturers, telecommunications providers and oil exploration firms.
Fixed-capital investments typically don’t depreciate in the even way that is shown on income statements. Some devalue quite quickly, while others have nearly infinite “usable” lives. But the depreciation method allows investors to see a rough estimate of how much value fixed-capital investments are contributing to the current performance of the company.
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Search results for 'Fixed Capital'
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http://www.investopedia.com/articles/basics/06/capitalstructure.asp
... Also, unlike debt, there are no fixed payments of principal or interest ... total
capitalization) compares the debt component of a company's capital structure (the ...
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http://www.investopedia.com/articles/fundamental/03/061803.asp
... Analyzing a company's working capital can provide excellent insight into how well
a company handles its cash, and whether it is likely ... 30 Year Fixed, 3.80%, 3.80 ...
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http://www.investopedia.com/articles/03/020603.asp
... of a local currency was fixed at a set exchange rate to gold ounces. This was known
as the gold standard. This allowed for unrestricted capital mobility as ...
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http://www.investopedia.com/university/financialstatements/financialstatements6.asp
... It is the latter type of business - the type that is capital intensive with a focus
on inventory rather than fixed assets - that deserves the greatest ...
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http://www.investopedia.com/articles/basics/06/assetperformance.asp
... others. Natural resource and large capital equipment producers require a
large amount of fixed-asset investment. Service companies ...
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http://www.investopedia.com/ask/answers/12/capital-gains-taxes-home-sales.asp
... If the partnership owned the house for more than one year then the gain would be
eligible for the long-term capital gains tax rate ... 30 Year Fixed, 3.80%, 3.80%. ...
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http://www.investopedia.com/articles/mutualfund/09/subaccounts-or-mutual-funds.asp
... Up until this time, a fixed annuity holder simply owned a single contract ... terms of
daily price and performance, costs and fees and capital gains distributions. ...
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http://www.investopedia.com/articles/basics/04/032604.asp
... Therefore, investors seeking capital gains are likely not those who need a fixed,
ongoing source of investment returns from their portfolio, but rather those ...
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http://www.investopedia.com/articles/basics/06/workingcapital.asp
The Working Capital Position. ... Whatever its size, the amount of working capital sheds
very little light on the quality of a company's liquidity position. ...
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http://www.investopedia.com/articles/06/CAPM.asp
The Capital Asset Pricing Model: An Overview. November 24 2010 | Filed
Under ยป Economics, Financial Theory. No matter how much we ...
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