Current Assets

What are a company’s Current Assets?


Current assets are assets which are either cash, cash equivalents, receivables or items which can be quickly converted into cash. Typically current assets are expected to become cash within 1 year.


Current Assets can be found on the company’s balance sheet statement located in the 10 – K or 10 –Q filing.


Example below from Intel’s (INTC) 2012 2nd quarter earnings.

(Click to Enlarge)



Current Assets are used in valuation metrics such as:

Interpretation of Financial Statements, Defines this as:

“Current assets are those which are immediately convertible into cash or which, in the due course of business, tend to be converted into cash within a reasonably short time. Sometimes they’re called Lakewood or quick or floating assets.”



Financial Statements: A Step-by-Step Guide to Understanding and Creating Financial Reports, Defines this as:

“Current assets are those assets that are expected to be converted into cash and less than 12 months.

Current asset groupings are listed in order of liquidity with the most easy to convert into cash listed first:

1. Cash
2. Accounts Receivable
3. Inventory.”


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