Tangibles

Tangibles refer to physical or material assets that can be touched, seen, and held. They represent items with a real, concrete presence and value, often used in business accounting and personal finance to differentiate from intangible assets such as patents or goodwill. Tangibles are typically objects or things that have a physical form and can be assessed for their worth. They are crucial for assessing net worth and can include items used as collateral for loans or investments. Depreciation and physical wear & tear are common considerations for Tangibles over time.

Tangibles meaning with examples

• A construction company's tangible assets include buildings, heavy machinery like excavators and bulldozers, raw materials like timber and cement, and company vehicles. These items are essential for their operations and represent significant investments. They are all listed on the company's balance sheet and subject to depreciation over time, reflecting their decreasing value with use and age. Their total value gives an indication of the company's worth.
• When a homeowner applies for a mortgage, the tangible asset that secures the loan is the house itself. Other Tangibles might include furniture and appliances used within the home, which contribute to the property's overall value. Appraisers assess these assets to determine the loan amount and the risk involved for the lender. The house's physical state, size, and location are all Tangibles that are important factors.
• A retail business has many tangible assets, including inventory, such as clothing or electronics, store fixtures like shelving and display cases, and cash registers. These tangible assets are essential for generating revenue. The value of the inventory fluctuates depending on demand and sales. Regular inventory counts are crucial to accurately represent this value. All these can be easily assessed for valuation.
• In personal finance, Tangibles might consist of a car, jewelry, or art collection. These items represent a person's physical wealth and can be sold if needed to raise funds. Unlike intangible assets such as stocks, these assets are directly controlled by the individual. Their market value can be assessed for net worth calculations. Keeping their worth is a matter of protecting them from damage and theft.