Property and Fixed Assets
Part 2 of a 3 part series
- Almost fully depreciated assets.
- Depreciation as a percent of sales significantly out of line with industry averages.
- Net sales to net fixed assets significantly out of line with industry averages.
Steps to Improve: EQUIPMENT
- Consider replacing fully depreciated assets to improve efficiency.
- Avoid costly equipment buying blunders.
- Be sure you really need it before buying.
- Sell off idle assets.
- Liquidate assets that are no longer essential.
- Sell off unneeded equipment, fixtures, furniture and supplies.
- Secure current bids for all major expenditures.
- Avoid fancy furniture and fixtures.
- Don’t pay for quality where it doesn’t count; ask how it helps the bottom line.