asset structure

asset structure

the proportions of various types of ASSET held by a firm as shown in the BALANCE SHEET. For example, a large manufacturing company or public utility is likely to have proportionately large FIXED ASSETS, while retail companies are likely to have proportionately large CURRENT ASSETS, such as DEBTORS and STOCK. A firm's asset structure helps to determine the way in which finance is raised, in particular the balance of long-term LOANS and short-term DEBT. See CAPITAL GEARING.