what is gross block?



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What is the necessary of it?

2 Answer(s)


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Gross block refers to all the assets a company owns.

For a restaurant that would include the furniture, ovens, equipment, etc.

The higher the gross block, the business is referred to as "asset heavy". Such businesses include manufacturing, power, retail etc

Asset light business include technology businesses.

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The total value of all of the assets that a company owns. Value is determined by the amount it cost to acquire these assets, and it is not decreased to take into account the effects of depreciation.

It is necessary to ascertain the amount of profit or return that the utilisation of these assets are generating.