What Are Net Fixed Assets?

Net value of fixed assets is also called depreciation value, which refers to the original value of fixed assets less the net amount after depreciation has been made. It can reflect the amount of funds actually used by logistics enterprises on fixed assets and the degree of old and new fixed assets. This valuation method is mainly used to calculate the profit, loss, and loss of fixed assets.

net value of fixed assets

This valuation method is mainly used to calculate the profit, loss, and loss of fixed assets.
Net Fixed Assets =
Net Fixed Assets Rate
Also called "useful coefficient of fixed assets". It refers to the ratio of the net value of an enterprise's fixed assets to the original value of the fixed assets. Reflects the level of old and new of fixed assets. Its calculation formula is:
Fixed assets net value rate = (end of period fixed assets / end of period fixed assets original value) * 100%
Net fixed asset value at the end of the period = original value of the fixed asset at the end of the period-accumulated depreciation at the end of the period
Multiplying the net value rate of various types of fixed assets by the reciprocal of the classification depreciation rate of such fixed assets, the useful life of such fixed assets can be calculated. Its calculation formula is:
The useful life of a certain type of fixed assets = rate of net value of this type of fixed assets * (1 / class depreciation rate of this type of fixed assets)
Suppose that the original value of a company's transportation equipment is 3 million yuan, the net value is 1.8 million yuan, and the classification depreciation rate is 12%. then:
Net value ratio of transportation equipment = (1.8 million yuan / 3 million yuan) * 100% = 60%
The useful life of transportation equipment = 60% * (1/12%) = 5 (years)

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