Here's why: 1) Cashflow lending can maximise the debt capacity of the business As we are not restricted to the lending against the tangible assets
of the business there is the potential to leverage more debt than conventional lending; 2) It levels the playing field for service companies Thousands of SMEs are servicesfocused, with little or no tangible assets
Also, in the balance sheet of 31 December 2018, tangible assets
increased by EUR44.2m and interest-bearing liabilities increased by EUR 46.2m.
Downward pressure on Kookmin Bank's ratings could develop in the event of (1) its tangible common equity capital ratio falling below 12%; (2) its net income to tangible assets
ratio falling below 0.2%, due to a sharp increase in credit losses; or (3) its problems loans to gross loans ratio rising above 3.0% (0.99% as of September 2015).
The stake in Long Haul, also known as Helm, has a book value of SGD129m (USD101.9m/EUR74.3m) and a net tangible asset
value of SGD37m, based on K1's consolidated results for the second quarter ended 31 December 2013.
However whilst tangible assets
only account for about 20-30 per cent of a company's value, the remaining 70-80pc accounts for intangible assets.
Fourth is what Walchek called the "new wealth effect": "When they feel wealthy, they spend more." With a wealth assessment based on the value of the home as well as tangible assets
, "it's more liquid and gives greater visibility to that value on a regular basis.
High-net-worth homeowners can sufficiently protect their wealth if they have access to a 360-degree view of their tangible assets
In recent years, more and more high net worth families are turning to tangible assets
, and not just for their aesthetic value.
Illustration by Leandro Castelao 1975 1985 1995 2005 2010 Tangible assets
as a 83% 68% 32% 20% 20% proportion of the market value of the S&P 500 Intangible assets as a 17% 32% 68% 80% 80% proportion of the market value of the S&P 500 NB: In 2009 tangible assets
as a proportion of total market value in the S&P 500 hit a peak of 81 percent.
In Goldco's professional opinion, “It is crucial to diversify investment portfolios to include historically-proven tangible assets
that have globally-recognized 'intrinsic value'; that is, value that is inherent and not subject to the devaluation of currency or the collapse of stocks and bond markets.”