Return on Investment (ROI)
Maintaining an Accurate
Inventory of Fixed Assets

Calculate the return on investment of having an
accurate inventory of fixed assets and capital equipment!

 

For help on the values, click the question mark to the right of the description, or Contact Asset Services for assistance in generating your return on investment.

     
Total Cost of Furniture, Fixtures, and Equipment (Personal Property) on the books?
(Quick estimate - Multiply the number of line items by the average cost/asset)

Accumulated Depreciation of Personal Property?

Capitalization Threshold or Average Cost per Asset?

Income Tax Rate?   %
Personal Property Tax Rate?   %
Insurance rate for personal property?   %
Percentage of book assets that are non-existent.?
("Ghost" assets.  Percentage of assets currently on the books but are physically gone or stored for liquidation.)
  %
Percentage of Untagged and/or Unrecorded Assets?
(100% if  Assets are not currently tagged and tracked.  Percentage of assets that are purchased an put into service, but not recorded in the asset ledger or do not receive a property tag.  These are often assets that "come in the back door" and were not property received.)
  %
Percent of assets missing property tag that are lost?
(Percent of assets not recorded in the system and/or do not have a property tag that disappear. Assets missing a property tag and/or poor visibility from a management level are especially vulnerable to shrinkage, displacement, or improper liquidation/disposal.  For example, out of 100 laptops without a property tag, how many are likely to "disappear")
  %
Percent of assets unused that may be reassigned or moved.?
Percentage of assets could be re-allocated or re-assigned. Assets that are "known" may be re-assigned by management avoiding the purchase of new assets when existing assets could be used instead
   %
Intangible Costs ?
Examples include fines for regulatory non-compliance, cost of professional staff for remediation of compliance issues, cost of negative public perception

$
Cost of professional staff assigned to inventory / hr
Hourly cost to your organization of professional staff removed from their normal duties to perform inventories

$
Professional Staff Time
Hours per year spent by professional staff on physical inventory duties

$
Number of staff assigned to inventories

$




Help Section

Number of Fixed Assets

Total number of fixed assets in the organization (not counting land, buildings, and improvements) [back]


Value of Fixed Assets

Total value of assets on the books, less infrastructure assets [back]


Accumulated Depreciation

Amount of accumulated depreciation on non-infrastructure assets[back]


Value/Asset or Capitalization Threshold

Capitalization threshold, or average cost of fixed assets. [back]


Average Accumulated Depreciation Percentage

Average percentage of accumulated depreciation of assets on the books.  (On average, how much of the value of assets has already been expensed). [back]


Percentage of Assets Not in Service

"Ghost" assets.  Percentage of assets currently on the books but are physically gone or stored for liquidation.   Our experience has shown that an average asset management program typically will find approximately 10 percent of assets are displaced annually.  Organizations that have poor or non-existent asset management programs will typically find 20% to 40% of assets missing or displaced after the first inventory. [back]


Income Tax Rate

Organization income tax rate.  38% is the typical corporation rate. [back]


Personal Property Tax Rate

Percentage of tax paid on personal property[back]


Personal Property Assessment Ratio

State/Local assessment rate for the type of an organization.  30% based on an average Kansas City metropolitan area county for a business.  Exempt organizations would be 0%.[back]


Personal Property Mill Levy

State/Local mill levy for the type of an organization.  112 based on an average Kansas City metropolitan area county. [back]


Average yearly insurance premium on personal property

Average yearly cost of insurance on fixed assets entered as a percentage of the cost of fixed assets. [back]


Percentage of Un-recorded Assets

Percentage of assets that are purchased an put into service, but not recorded in the asset ledger or do not receive a property tag.  These are often assets that "come in the back door" and were not property received. [back]


Percent Shrinkage of Un-recorded Assets

Percent of assets that do not have a property tag that "disappear".  Assets missing a property tag or "visibility" from a management level are especially vulnerable to shrinkage, displacement, or improper liquidation/disposal.  Estimate on the percentage of shrinkage for unrecorded assets range from 10% to 25%.  The larger the organization, the higher the percentage of shrinkage. [back]


Percent of Assets they may be re-allocated

Percentage of assets could be re-allocated or re-assigned with an active asset management program.  Assets that are "known" may be re-assigned by management avoiding the purchase of new assets when existing assets could be used instead. [back]

Cost of regulatory compliance/non-compliance

 Estimated yearly cost spent on inventory related compliance issues, or the penalty of non-compliance. [back]