In: Finance
Asset Management is an important activity which is vital to corperation bottom line because when there will be a better Asset Management, it would be leading to efficiency in the use of the assets and generating maximum turnover out of those assets and it will also mean that there will be lower wastage and hence the overall asset turnover ratio will be increasing and it will provide a chance for the company to reduce the capital and increase turnover and it will also mean that the company's overall profit will also be growing so the company will be able to maximize its profits by operating the assets efficiently.
An organisations that should efficiently use its asset is General motors because it is not able to generate a higher amount of sales out of its existing Assets and there is a higher amount of depreciation on its assets also so there is a very lower effect on the profits of the company and it is also leading to a lower profits due to lack of efficiency in operating of assets.