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jeremylives5280 | Can employees be a physical asset? |
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Skepticalist
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No, not a physical asset when considering accounting laws. But the most important part of the company, yes. |
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★Greed★
 |
Yes, most show business people would say so. |
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jeff410
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They arent an accounting asset. But they are an asset in terms of financial valuation. Especially in industries like tech. Because its the intellectual assets of their employees that add value. Tech companies dont have a lot physical tangible assets. And most of the tangible assets those companies have arent the most produictive part of the company. So return on assets for a tech company is not a very meaningful ratio. Revenue per employee would be more meaningful for a tech company. In industries like manufacturing, construction, oil and gas which are capital intensive, its the physcial assets that produce the value for the company. |
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jb1
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employees are a physical asset to any business and should be treated accordingly..looked after and respected for the work they do will bring you greater returns thereby a more successful business..what goes around comes around |
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Heinz M
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If they weren't would any company pay them in excess of $100 Million a year?
Think of the CEO of Microsoft, who is worth around $10 Billion all received from MS. |
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y_welton
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I always thought that physical assets are land, buildings, etc. Wouldn't employees be liabiliities because you pay them. |
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His Divine Shadow
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No, they aren't. Their Intellectual Property can be capitalized, but human beings are not depreciable assets - the costs associated with their labour is a perodic expense. |
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Jessica
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Ha! who is going to help you if you don't have good helpers around...
Think of them as your major asset. Ask any major corp what they will be without good empoyes. |
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unisoul
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That will be coming back of the slavery age |
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tweetymay
 |
only if you purchased them.
When you pay them, you are paying for their time, experience, assistance. You are paying money TO them not FOR them.
If they are good workers, they are an assett to the company, but not a PHYSICAL asset. |
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