Why financial managers should identify surplus assets and dispose them?

Over funding as well under funding are detrimental to a company's financial health. Under funding is a situation where the company does not have enough funds to meet its requirement of day-to-day activities. This can be a very situation for the company since it does not enough cash available.

Over funding as well as having surplus assets is also equally dangerous for a company since the firm is unable to make enough returns on such idle money. Another reason for financial managers to avoid excess assets is because it would lead to a habit of unnecessary spending.

Holding excess cash or assets also has an opportunity cost attached with since the firm could have invested that cash somewhere or rented out that asset and earned some returns. If a company does not do that then it is losing out on an opportunity.