CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

What are redundant assets?

Redundant assets

Any assets that have the potential to provide income or ROI, but are not tied to the running of a company, are classed as redundant or non-operating assets. They hold value for the company but they are not essential to the company's core operations.

Where have you heard about redundant assets?

Redundant assets are included on a company's balance sheet and their value is counted in evaluations of the company's total worth. On the other hand, because they are not involved in the core operations of the business, they are not factored into estimates of a company's future growth or earning potential.

What you need to know about redundant assets.

A company's redundant assets could range from property or land that's not used in the company's operation to cash or other marketable securities that have accumulated on the company's balance sheet.

As well as adding value to a company, redundant assets can provide an extra source of income. For example, if a company has a property it no longer needs to use for its core operations it can rent out the building to raise non-operating income. This can help diversify risk because it gives the business a financial backup it can use if it loses money through its normal operations.

Find out more about redundant assets.

Redundant assets can be a source of non-operating income for a company. Find out about other ways a company can earn non-operating income.

Related Terms

Latest video

Latest Articles

View all articles

Still looking for a broker you can trust?

Join the 630,000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading