What Is a Tangible Asset? Comparison to Non-Tangible Assets

A tangible asset is a physical object that can be seen, touched, and has value. Tangible assets are often used to generate revenue or produce other assets. Examples of tangible assets include cash, land, buildings, equipment, inventory, and vehicles.

Tangible assets are often considered to be more valuable than intangible assets because they are more concrete and easier to assess. However, intangible assets can also be valuable, especially if they contribute to the long-term success of a business. Examples of intangible assets include patents, trademarks, copyrights, goodwill, and brand equity.

When comparing tangible assets to intangible assets, it is important to consider the specific needs of the business. For example, a business that is just starting out may need to focus on acquiring tangible assets, such as equipment and inventory, in order to generate revenue. However, a business that is established and has a strong brand may be able to focus on acquiring intangible assets, such as patents and trademarks, in order to maintain its competitive advantage.

It is also important to consider the risks associated with each type of asset. Tangible assets are generally considered to be less risky than intangible assets because they are more likely to retain their value over time. However, intangible assets can be more valuable than tangible assets if they are successfully managed.

Overall, tangible assets and intangible assets can both be valuable to a business. The specific needs of the business and the risks associated with each type of asset should be considered when making decisions about which assets to acquire.

Here is a table that summarizes the key differences between tangible assets and intangible assets:

| Tangible Asset | Intangible Asset |
|---|---|
| A physical object that can be seen, touched, and has value | An asset that does not have a physical form but has value |
| Often considered to be more valuable than intangible assets | Can be more valuable than tangible assets if they are successfully managed |
| Less risky than intangible assets | More risky than tangible assets |

It is important to note that this is just a general overview of tangible assets and intangible assets. There are many exceptions to these rules, and the specific needs of the business should always be considered when making decisions about which assets to acquire.