What is good capital

It is universally described as “capital asset” all equipment, buildings and facilities that are used by a company to produce and offer all its products or services; If we talk about businesses that operate internationally, capital goods are all the expenses that companies incur during their operation, including office maintenance (rent, stationery) and employee uniforms.

Capital goods are an important factor in the economic development of a company, these financed structures are positioned within the group of expenses that a company has annually; When goods are used for a long period of time, like any material thing, they suffer damage, the moment they are defective they must be replaced or repaired, the cost of these modifications means a primary expense for the development of a business.

The list of capital goods of a company usually includes: heavy machinery (excavators, vehicles, etc.), office supplies (computers, printers), among others, which are characterized by requiring a large investment, but their use can be delayed for many years.

In this way, all products that are used to manufacture a final product can be defined as capital goods, that is, they are not managed for the consumption of its employees, but are tools to generate more goods or services.

Thanks to the possession of a capital asset, you have the opportunity to maintain a return on the money spent on that material. As they are elements intended to continue the profitable process of a company, thus increasing financial capital, a synonym for capital good is the term “fixed assets”, as it is considered a good that generates more assets.

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