Property, plant, and equipment assets are also called fixed assets, which are long-term physical assets. Industries that are considered capital intensive have a significant amount of fixed assets, such as oil companies, auto manufacturers, and steel companies.
Companies that are expanding may decide to purchase fixed assets to invest in the long-term future of the company. These purchase are called capital expenditures and significantly impact the financial position of a company. Whether a portion of cash is used, or the asset is financed by debt or equity, how the asset is financed has an impact on the financial viability of the company.
It's important to know where a company is allocating its capital, whether the company is making capital expenditures, and how the company plans to raise the capital for their projects. If new equity is issued, the stock price might decline due to dilution of the shares. If cash is used, the company may be unable to pay dividends in future quarters. If the company obtains financing from a bank or private equity firm, the company will have debt-servicing costs associated with the additional long-term debt.