COMPREHENSIVE EVALUATION OF FIXED ASSET CONDITIONS AND UTILIZATION EFFICIENCY IN BUSINESS ENTITIES: AN EMPIRICAL STUDY

Abstract

This research systematically evaluates the technical state, structural composition, and overall utilization efficiency of fixed assets within business entities operating in a transitioning economy. Under contemporary reporting frameworks, including International Accounting Standard (IAS) 16 (Property, Plant and Equipment), establishing robust analytical models is essential to optimize capital productivity and monitor depreciation behavior. Utilizing financial panel data from twelve selected manufacturing enterprises over the 2021–2025 period, this paper applies quantitative ratio analytics—focusing on capital productivity, capital intensity, wearing-out metrics, and renewal velocity—alongside descriptive statistics. The empirical findings demonstrate a strong positive correlation (r = 0.84) between targeted technological modernization and total asset turnover. Furthermore, significant structural disparities are highlighted between national statutory accounting practices and international standards regarding impairment testing (IAS 36) and component depreciation. Based on these insights, practical strategic measures and managerial frameworks are outlined to enhance operational yield and ensure long-term financial sustainability.