When analysed by industry, the reliance on fixed assets varies significantly. Manufacturing leads with a fixed asset-to-total-assets ratio of 85%, reflecting its asset-intensive nature, followed by Pharmaceuticals (60%) and Mining (53%).
Telecommunication, Real Estate, and Oil & Gas also exhibit substantial reliance, with ratios of 47%, 46%, and 36% respectively.
In contrast, Banking and Insurance demonstrate a lower ratio of 5%, indicative of their capital allocation to financial instruments rather than physical assets. Despite the significant role fixed assets play in organisational success, many businesses struggle to manage them effectively.
Leave a comment