Redundant Assets

Redundant assets are assets owned by a company that are no longer required for its core business operations. These may include surplus property, equipment, or investments that do not contribute to the company's primary revenue-generating activities. Companies often sell or repurpose redundant assets to free up capital, reduce costs, or improve operational efficiency. Identifying and managing redundant assets can be important for optimizing the use of a company’s resources.

Example

A manufacturing company has redundant assets in the form of unused warehouses and outdated machinery, which it decides to sell to improve cash flow and reduce maintenance costs.