Tangible assets are physical assets that can be touched or measured, such as property, vehicles, and equipment. The spelling of "tangible assets" uses the IPA phonetic transcription /ˈtændʒəbəl ˈæsɛts/, with stress on the first syllable of each word. The "g" in "tangible" is pronounced as /dʒ/ and the "s" in "assets" is pronounced /s/. This term is commonly used in business and accounting to differentiate between physical and intangible assets, such as patents or trademarks.
Tangible assets refer to physical resources or properties that hold a measurable value and can be physically observed or touched. These assets are concrete and can be used to generate economic benefits or provide future benefits to individuals or organizations. They are characterized by their physical existence, possessibility, and can be traded or sold in the market.
Tangible assets can include a wide range of items such as buildings, land, machinery, vehicles, equipment, inventory, cash, and even investments in other physical assets. These assets are typically recorded on a company's balance sheet and are considered an essential component of its overall net worth.
The value of tangible assets can fluctuate over time due to factors such as depreciation, obsolescence, wear and tear, or changes in market demand. Regular maintenance and proper management are crucial to retaining the value and utility of these assets.
Investors and financial analysts often evaluate tangible assets as they provide a concrete measure of a company's value and financial health. They are instrumental in determining a company's liquidity, solvency, and overall financial stability. Moreover, tangible assets can also serve as collateral for obtaining loans or attracting potential investors.
Overall, tangible assets are essential resources that possess physical form, hold monetary value, and play a significant role in financial decision-making for individuals, businesses, and organizations.
The word "tangible" comes from the Latin word "tangibilis", which means "able to be touched or handled". It is derived from the verb "tangere", meaning "to touch".
The word "asset" comes from the Middle English word "assett", which is a variant of "assect", derived from the Old French word "asetz". The French term has its origin in the Latin word "adsecutus", which means "obtained" or "attained".
When these two words are combined, "tangible assets" refers to assets that have physical existence and can be touched or felt.