Summary
Intangible Assets are non-physical assets that provide economic value. Examples may include goodwill, trademarks, patents, licences, software, and brand value.
These assets can be important even though they do not have a physical form.
Why it matters
For many companies, intangible assets can support competitive advantage and future earnings. They may represent intellectual property, customer relationships, technology, or brand strength.
However, intangible assets can be more difficult to value than physical assets.
How to read it
A high level of Intangible Assets may indicate that a company’s value depends significantly on non-physical assets. Investors should review whether these assets are supported by earnings and business performance.
Intangible assets are also important when assessing Tangible Book Value.