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Tangible Asset

Tangible assets refer to assets that can be seen, touched and quantified. These assets are a measure of the ways a company generates revenue, such as property, plant and equipment (PP&E), land, buildings and machinery. Companies value their tangible assets by determining the current market value of the asset, which considers factors such as the asset’s age, condition and usefulness. Tangible assets can be used as collateral for loans and can appreciate over time, creating a source of capital gains. However, tangible assets can be expensive to acquire and maintain, their value can depreciate over time and they can be damaged or destroyed. Three examples of companies that have highly valuable tangible assets are ExxonMobil, Coca-Cola and Boeing. ExxonMobil is an oil and gas company that owns significant reserves of oil and gas, as well as refineries and production facilities. Coca-Cola is a beverage company that owns bottling plants, distribution centers and other physical assets used in the production and distribution of its products. Boeing is an aerospace company that designs and manufactures airplanes and other aircraft, which are highly valuable tangible assets.