A fixed asset — also referred to as a tangible non-current asset or Property, Plant and Equipment (PP&E) under Ind AS 16 — is a long-term physical asset owned by a company and used in its business operations to generate revenue over multiple accounting periods, rather than being held for sale in the ordinary course of business. Fixed assets include land, buildings, machinery, vehicles, equipment, computers, and furniture. They are recorded on the balance sheet at cost (or revalued amount), net of accumulated depreciation and impairment losses. Unlike current assets, fixed assets are not expected to be converted to cash within one year. Capital expenditure (capex) on fixed assets represents a company's investment in long-term productive capacity. For investors and analysts on Ventura Securities, fixed asset intensity, capex trends, asset turnover ratios, and the age and utilisation of a company's fixed asset base are critical inputs for assessing operational leverage, future growth capacity, and the quality and sustainability of return on capital employed (ROCE).
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