What it is:
How it works/Example:
Also called a redundant asset, a non-operating asset usually generates some form of revenue or return for the owning company, but play no role in the company's operations.
For example, if a company used to manufacture plastic model kits but later moved into manufacturing plush children's toys, the dyes used to create the parts for the model kits would be considered non-operating assets because they are not used in the production of plush toys.
A company's asset portfolio is also an example of a non-operating asset (except in the case of an investment company or mutual fund).