shrinking asset

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Shrinking Asset

1. An asset that depreciates. For example, an automobile is a shrinking asset because it loses value over time due to its limited useful life. Shrinking assets are important in taxation: one pays less in taxes on an asset the more it depreciates. See also: Absolute physical life.

2. An asset that is consumed. These shrinking assets are usually commodities; for example, a trucking company may buy a large amount of gasoline, which could theoretically be resold or liquidated, but is in fact used in the operation of the trucking company.

shrinking asset

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Holland Cooke, a radio con-sultant from Rhode Island, said there are two trends contributing to this development: I luge radio corporations are shouldering enormous debt, leading to shrinking assets in small-and medium-market stations, and younger audiences are losing interest in shows patterned after leading talk show hosts.
Unlike the leverage ratio, where the only remedies are increasing capital or shrinking assets, credit unions can also manage their balance sheet mix (risk) to remain well capitalized under the risk-based requirement.
Given their shrinking assets in this climate of austerity, the least they can pledge is moral support.
Baby Boomers are increasingly becoming aware of the risk of shrinking assets.
The industry has been shrinking assets between June 2009 and June 2010," said Ajit Engineer, Chief Executive Officer of Muscat Finance Company (MFC).
Most people don't know about these types of trusts so ING is trying to get the word out to people worried about shrinking assets during the economic downturn, as well as the estate tax issue, Mitchell said.
Higher personal debt and shrinking assets are further contributing to reduced creditworthiness.
Hurley, out in her finery this week for the BAFTA film awards, showed off her incredibly shrinking assets.
Although the capital-to-asset ratio of New England banks has been increasing in the past two years, this improvement is primarily the result of shrinking assets rather than of capital growth.
The TBTF institutions also paid off much of their debt, reducing leverage and shrinking assets.
Shrinking assets have changed what services corporates are able to offer.