What is a Tangible Asset?
A tangible asset is an asset with a physical form that has a value to a company or individual. Tangible assets are typically used to produce income or are held for investment purposes. These assets can range from real estate, to equipment and machinery, to intellectual property.
Examples of Tangible Assets
Some of the most common examples of tangible assets include:
- Real estate
- Equipment/machinery
- Vehicles
- Furniture/fixtures
- Inventory
- Computers/electronics
- Cash/investments
- Intellectual property
The Value of Tangible Assets
Tangible assets are valuable to companies and individuals because they can be used to generate income or increase the value of the asset over time. For example, a company may purchase a piece of machinery that can be used to produce a product or perform a task. The company then has the ability to use the asset to generate income, which can be used to reinvest in the business or to provide a return to shareholders. In addition, tangible assets generally appreciate in value over time. For example, a piece of real estate may increase in value due to inflation or market forces. This can provide a financial benefit to the owner of the asset.
Conclusion
Tangible assets are valuable to companies and individuals because they can be used to generate income or increase the value of the asset over time. Examples of tangible assets include real estate, equipment/machinery, vehicles, furniture/fixtures, inventory, computers/electronics, cash/investments, and intellectual property. For more information on tangible assets, please visit the following resources: