Hard Asset


DEFINITION of 'Hard Asset'

A tangible and physical item or object of worth that is owned by an individual or a corporation. In currency transactions, hard assets are synonymous with currencies that the public generally has faith in, such as the U.S. dollar or the euro.

A hard asset is the opposite of an intangible item such as goodwill or a patent.


Hard assets often refer to items such as buildings, cash or other fungible assets. Hard assets are considered particularly valuable because they can be used to produce or purchase other goods or services.

When analysts calculate a company's intrinsic value, a portion of this underlying value is derived from the value of its hard assets.

  1. Future Capital Maintenance

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  2. Intangible Asset

    An asset that is not physical in nature. Corporate intellectual ...
  3. Fungibility

    A good or asset's interchangeability with other individual goods/assets ...
  4. Valuation

    The process of determining the current worth of an asset or company. ...
  5. Tangible Asset

    Assets that have a physical form. Tangible assets include both ...
  6. Intrinsic Value

    Intrinsic value is the actual value of a company or an asset ...
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  1. What is the difference between amortization and depreciation?

    Because very few assets last forever, one of the main principles of accrual accounting requires that an asset's cost be proportionally ... Read Full Answer >>
  2. Can working capital be depreciated?

    Working capital as current assets cannot be depreciated the way long-term, fixed assets are. In accounting, depreciation ... Read Full Answer >>
  3. What does high working capital say about a company's financial prospects?

    If a company has high working capital, it has more than enough liquid funds to meet its short-term obligations. Working capital, ... Read Full Answer >>
  4. How can working capital affect a company's finances?

    Working capital, or total current assets minus total current liabilities, can affect a company's longer-term investment effectiveness ... Read Full Answer >>
  5. What are working capital costs?

    Working capital costs (WCC) refer to the costs of maintaining daily operations at an organization. These costs take into ... Read Full Answer >>
  6. What does low working capital say about a company's financial prospects?

    When a company has low working capital, it can mean one of two things. In most cases, low working capital means the business ... Read Full Answer >>

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