What are Tangible Assets?
Tangible Assets are assets which are physical in nature. Examples of Tangible Assets include; cash, inventory, property, equipment, etc. Tangible assets are something you can actually put your hands on. Tangible Assets have a relatively easily defined value to the company.
Looking at Intel’s 2012 2nd quarter financial results (located here), we can see Intel’s assets listed below. Most assets fall under the classification of “tangible” such as cash, inventory, etc. Intel has 2 lines in the balance sheet for intangible assets, “Goodwill” and “Other intangible assets”
(click to enlarge)
The value of a company’s tangible assets are used for the calculations of a company’s book value.
More conservative calculations of a company’s book value such as the Price to Tangible Book Value ratio, include only the tangible assets of a company.
Interpretation of Financial Statements, Defines this as:
“Tangible assets are assets either physical or financial in character, e.g., plant, inventory, cash receivables, investments.”
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