Fundamental Glossary / Financial Statements
Fixed Assets
Tangible long-lived assets used to produce goods or services: land, buildings, plant, and equipment.
Formula
Gross block - accumulated depreciation = net block. Capital work-in-progress sits beside them until the asset is ready.
What it means
Fixed assets are the physical earning base. In Indian schedules they appear as property, plant and equipment.
Gross block is historical cost. Net block is what remains after depreciation. A low net-to-gross ratio means the fleet is old on the books.
How to read it
Compare capital expenditure with depreciation. Spending consistently below depreciation may mean the asset base is being harvested. Spending well above it is expansion, if the projects earn their cost.
What to watch
Fully depreciated assets can still be productive, so net block understates replacement cost. The opposite also happens: a shiny gross block of assets that demand has left behind.
This note explains the term. It is not a research recommendation, a target price, or a comment on any security. Ratios and regulatory thresholds change; use the latest filing or circular for a live figure.