What is Fixed Asset?
A definition of Fixed Asset
“A fixed asset is a long-term tangible piece of property or equipment that a company owns and uses in its operations to generate income. These assets are not expected to be consumed or converted into cash within a year.”

Business Glossary > What is Fixed Asset?
Examples of Fixed Asset in a Sentence:
Our company invested in new machinery as a fixed asset.
The building serves as a significant fixed asset for the firm.
Fixed assets like vehicles are crucial for operations.
Why is Fixed Asset Important in Business?
Fixed assets are critical to understanding a company’s financial health and operational capabilities. They represent significant investments that contribute to the company’s ability to produce goods and services, impacting long-term financial planning and investment strategies.
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Associated Terms
Here are some associated business terms and synonyms for “Fixed Asset”:
- Capital Asset
- Tangible Asset
- Property, Plant, and Equipment (PP&E)
General Motors Fixed Assets
General Motors owns substantial fixed assets in the form of factories and assembly lines. These assets are essential for its vehicle production process and represent a significant portion of the company’s total investments.
Final Notes on Fixed Asset
When evaluating fixed assets, companies should consider their useful life, depreciation, and the role they play in operations. Proper management of these assets ensures sustained operational efficiency and financial health.
This has been a definition of Fixed Asset meaning.
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