![]() ![]() Further, tracking the maintenance history of an asset to identify its condition can reduce asset deterioration, which is especially important in industries such as oil and gas and manufacturing, because managing deteriorating equipment is critical for mitigating on-site accidents and providing security for employees. This impacts your fixed asset turnover in another way, as well-maintained assets also tend to be more productive. ![]() Multiple maintenance management features, such as a complete service history, recurring services records and maintenance alerts facilitate the effective implementation of proactive maintenance strategies. Preventive maintenance is one of the best ways to extend the life cycle of your assets – it not only improves ROI, but also reduces the time and effort required to manage and extend the life of under-maintained equipment. Although wear and tear is inevitable, it is essential to ensure that you identify and fix important assets before they malfunction. ![]() Repairing an asset after it has broken down disrupts business operations and often amplifies equipment maintenance costs. Let’s look at some of the ways how you can optimize your fixed asset returns: 1. Achieving high returns from investments in fixed assets is a key tactic for improving business profitability. How can effective asset management maximize your fixed asset turnover?įixed assets require large-scale investments along with well thought-out management processes that ensure sound workflows for maximum ROI. Analyzing what direction your business is headed financially helps you forecast future growth and make more productive decisions that can make your business more competitive, faster. The comparison can motivate the team to better manage assets for maximum benefit. Allows easy comparisons: In order to best analyze your business performance, it is essential to compare your asset turnover with that of your competitors.Calculating returns on assets not only simplifies asset management, but allows you to analyze how well your team has used the resources to maximize revenue. Quantifying business growth helps you achieve goals that directly enhance your efficiency. Measure business performance: Return on fixed assets is one of the most important measures of your business’s overall profitability.Fixed asset turnover helps you decide what assets need replacement or repair, and allows planning for asset investment in advance to avoid unforeseen costs. The need to procure new assets arises when your existing assets become obsolete, and can no longer serve the operational needs of your business. Timely decision-making: If fixed asset turnover plummets significantly, then it could be a sign of unmaintained, out-dated equipment.It helps you understand how well your business is utilizing its assets to yield higher returns on investment, and allows accurate comparisons for profits between different time periods.The fixed asset turnover ratio offers multiple benefits for your business: Fixed asset management can be a complex process, but timely asset tracking and effective user management can have a very positive impact on business operations.įixed asset turnover is a statistical measure commonly used to account for the efficiency of fixed asset management. Efficient use and maintenance of fixed assets, especially high-value assets like IT equipment, trucks and vehicles, reduce costs and help achieve higher returns on investment. Good management practices help minimize downtime and prevent unexpected breakdowns– all of which extends asset lifespans.Īccording to an industry report, the asset management market is likely to reach $27.4 billion by 2025 with a CAGR of 10.3%. It encompasses maintaining a business’s fixed assets, analyzing their condition, and keeping them in good working order. Fixed asset management is essential for higher business efficiency and productivity. ![]()
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