Tangible Assets

Tangible assets are physical, measurable assets that a company owns and uses in its operations. These assets can include buildings, machinery, inventory, land, and equipment. Unlike intangible assets, which are not physical in nature (such as patents or goodwill), tangible assets have a clear market value and are used to produce goods or provide services. They are recorded on the company’s balance sheet.

Example

A manufacturing company lists its factory, equipment, and inventory as tangible assets on its balance sheet, all of which contribute to its production capacity.