current assets


Also found in: Dictionary, Thesaurus, Wikipedia.

Current assets

Value of cash, accounts receivable, inventories, marketable securities and other assets that could be converted to cash in less than 1 year.

Current Assets

Cash and other assets expected to be converted to cash within a year. Examples include accounts receivable, prepaid expenses, and many negotiable securities. Current assets are calculated on a balance sheet and are one way to measure a company's liquidity. Current assets tend not to add much to the company's assets, but help keep it running on a day-to-day basis. See also: Fixed asset, Gross working capital.

current assets

ASSETS such as STOCKS, money owed by DEBTORS, and cash, which are held for short-term conversion within a firm as raw materials are bought, made up, sold as finished goods and eventually paid for. See FIXED ASSETS, WORKING CAPITAL, WORKING CAPITAL RATIO.

current assets

ASSETS, such as STOCKS, money owed by DEBTORS, and cash, that are held for short-term conversion within a firm as raw materials are bought, made up, sold as finished goods and eventually paid for.

See FIXED ASSETS, WORKING CAPITAL.

References in periodicals archive ?
Current assets are assets a company converts to cash in 12 months or less.
The liquidity of a firm is frequently measured using the current ratio defined as the ratio of the current asset to current liabilities.
Now imagine a trader with a current ratio of just 1.0; meaning that the value of current assets is exactly equal to his current liabilities (a major portion being bank debt).
It is designed to check and make use of the two components of working capital, current assets and current liabilities, to guarantee the most financially efficient operations of the company.
The Society's investment portfolio makes up 89 percent of current assets. The investment portfolio is conservatively invested to preserve capital and minimize any downside risk.
Even though the new standard could have materially affected the current assets, liabilities, and ratios for individual companies, the overall effect appears slight.
As for public sector companies, CAPMAS stated that the value of current assets amounted to EGP 226.6bn in FY 2014/2015 compared to EGP 192.9bn in FY 2013 /2014, an increase rate of 17.5%.
In this paper the idea of return on current assets (ROCA), return on working capital (ROWC), cost of working capital and required rate of return on working capital will be developed.
3 Another method for determining how much cash you should hold in the bank is to calculate working capital needs by subtracting total current liabilities from total current assets, then divide by sales.
The bank reported total current assets of KWD 2.98 billion, down from KWD 3.05 billion and total assets of 4.97 billion, up from KWD 4.91 billion.
The working capital refers to that part of the firm's capital which is required for financing short term or current assets. The current assets are those assets which can be converted into cash within one year or less than one year such as inventories, cash, debtors, bill receivables, prepaid expenses, short term investments etc.