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Operating Assets: could they be fixed? and intangible?

Updated: Sep 11, 2022


operating assets are those assets that have been acquired by the company to conduct the daily business operations


✦ then they could be either current assets, like cash, accounts receivable and inventory, and non-current or fixed assets, like equipment and machines


✦ fixed assets that are operating can also be intangible assets, like software and licenses


✦ an operating asset analysis should exclude those current or fixed assets which do not generate revenues referred to business, like a building that only generates real estate income


✦ the return on operating assets ratio can be more useful (than the mere return on assets) when analyzing the profitability of some long-term investments in the business



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