Asset-Light Model

Definition

A business strategy that minimises investment in physical assets and instead relies heavily on intangible assets such as software, brand, data, and intellectual property to generate revenue. Asset-light companies typically exhibit higher scalability and return on capital but can be harder to value using traditional balance-sheet methods.

Related Terms

Absorption Rate Accretion/Dilution Analysis Adjusted EBITDA Allocative Efficiency Amortisation

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