sweating assets

‘sweating’ assets

the process of increasing the profits generated from a company's ASSETS where the RETURN ON CAPITAL EMPLOYED is inadequate. This could involve increasing selling prices of products; reducing unit production and selling costs; increasing sales volumes using present assets; or reducing the FIXED ASSETS and CURRENT ASSETS employed to achieve the present sales volume. Sweating assets is often a strategy employed after a company has been taken over.

References in periodicals archive ?

This is doubly so if the business is also capital intensive so sweating assets as hard as possible is essential for survival, let alone generating returns, through one business cycle and into another.

GIANT SHIPPING ALLIANCE APPROACHES LIFTOFF

The typical themes of asset management and sweating assets by juggling occupiers, focusing upon early renewals, removal of break clauses etc.

Actively seeking lease renewals

While sales are forecast to continue to fall, Mr Parton intends to make Marconi more efficient, with more profits left from the reduced sales as the cost savings from the job losses and a continuing focus on sweating assets, like stock levels and debtors, all take effect.