Current Assets

SeekingAlpha  Sep 11  Comment 
By Don't Quit Your Day Job: When you follow an investment writer for a while, sometimes it’s impossible to pin down his or her exact thoughts on the market. Let’s face it – we writers are human, and as humans, we may present biased...
Forbes  May 2  Comment 
Allocations stay unchanged amid high levels of neutral sentiment.
Wall Street Sector Selector  Oct 8  Comment 
By gurufocus. "It always seemed, and still seems, ridiculously simple to say that if one can acquire a diversified group of common stocks at a price less than the applicable net current assets alone...the results should be quite satisfactory....
The DIV-Net  Apr 9  Comment 
In November 2008, I reproduced a list of some stocks that were selling below Net Current Asset Value. I updated that list in January 2009, and do so again now. I am using the closing price on April 7, 2009. There are a few standout performers...
The DIV-Net  Jan 29  Comment 
Last November, I published a list of Net Current Asset Value stocks to use as a starting point in doing research. So how have these stocks done since then? Good question. The theory, of course, is that these stocks will have less downside. The...


Current Assets are cash, cash equivalents or assets the company expects to sell, use-up, or convert to cash in the upcoming year

Current assets are one of two broad categories of assets reported on companies' balance sheets - the other is long-term assets. Current assets include:

  • Cash
  • Inventory: Includes inventory of raw materials, work in progress and finished goods
  • Short-term investments that can be converted to cash quickly, such as T-bills held by the company
  • Receivables (money owed to a company, usually as payment or goods or services)
  • Office Supplies

Net current assets or Working capital, calculated by subtracting current liabilites from current assets, is a measure of the assets the company has at its disposal in the short term to fund operations - other kinds of assets such as equipment, real estate and goodwill are less easily converted to cash.

By the principle of prudence, current assets are reported in the balance sheet at their least favorable valuation. Short-term investments, for example, will be recorded at the value that the firm paid for it or the market value, whichever is lower. It is only after selling the position that the company recognizes any gains. Similarly, inventory of raw materials is valued at the lower of cost of purchase and market price; and inventory of finished goods are recorded at the lower of cost of production and selling price.

Non-Cash Current Assets

Non-Cash Current Assets are equal to all Current Assets minus Cash and Cash Equivalents. This means, they are all assets which are not cash or are not quickly converted into cash. This includes stocks and loans which have fixed durations or must be sold before being turned into cash and cash equivalents.

Other Current Assets

Other Current Assets are non-cash assets which are due within a year. These assets include Accounts Receivable and Prepaid expenses.[1]


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Current Assets
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