Attention should be given to the following areas:
● If there is any over-investment.
● How much economical is the cost of capital received?
● If the organization is getting maximum returns for the capital employed.
● If there is any over-investment, that should be sold and similarly, unutilized fixed assets should be eliminated. Slow-moving or non-moving inventories should be removed and should transfer this surplus to the working capital to re-invest it in a cycle of more profitable area of business.