What do you mean by valuing assets over assets? What are heavy assets and light assets?

1. Heavy assets refer to tangible property owned by the company, such as raw materials for industrial plants. Heavy asset companies mean large capital investment, low profits and low gross profit margin. After upgrading, the assembly line needs to be updated, and the depreciation rate of property is high, such as most machinery manufacturing enterprises;

2, light assets, also known as light assets strategy, refers to the company to master the key business of individuals, rather than outsourcing non-core projects. Light asset strategy is a value-driven strategy.

The above is the meaning of valuing assets over assets.

Asset-oriented operational risk

1, occupying a lot of money and consuming a lot of economic costs;

2. There are many fixed costs, such as depreciation and amortization expenses, which will cause great losses once production changes or resources are not used enough;

3. With relatively large capital investment, the profit is less and the gross profit rate is low;

4. The production line needs constant innovation, the depreciation rate is high, the products need constant innovation, the development cost of new products is high, and the capital investment for upgrading the production line is large.

This paper mainly discusses the meaning of attaching importance to assets and belittling assets. The content is for reference only.