Definition:

Tangible Other Assets refer to physical assets that a company owns, which do not fall under the categories of cash, inventory, or fixed assets like property, plant, and equipment. These assets are tangible, meaning they have a physical form and can be touched or seen.

Examples

Examples of Tangible Other Assets include office supplies, machinery parts, tools, and vehicles that are not classified as fixed assets.

Formula:

There is no specific formula for Tangible Other Assets as they are typically listed individually on the balance sheet under current or non-current assets, depending on their nature and expected usage period.

How to use the metric:

Tangible Other Assets are used to assess the total tangible resources available to a company that can be utilized in operations. They help in understanding the company's asset structure and resource allocation.

Limitations:

The main limitation of Tangible Other Assets is that they may not provide a complete picture of a company's financial health, as they exclude intangible assets like patents and trademarks, which can also be valuable. Additionally, their valuation can be subjective and may not reflect current market conditions.

Applies to:

Tangible Other Assets are relevant in industries with significant physical asset requirements, such as manufacturing, construction, and transportation, where physical tools and machinery parts are essential for operations.

Doesn't apply to:

Industries that are heavily reliant on intangible assets, such as technology or pharmaceuticals, may find Tangible Other Assets less relevant, as their value is often driven by intellectual property and innovation rather than physical assets.

Summary:

Tangible Other Assets are physical assets owned by a company that do not fit into standard categories like cash or fixed assets. They are crucial for understanding a company's tangible resource allocation but may not fully represent the company's value, especially in industries reliant on intangible assets.