current assets

USAGE SUMMARY

"current assets" is a correct and usable phrase in written English.
It is used to refer to assets that a company owns that are readily convertible into cash. For example, "The company's current assets include cash, accounts receivable, and inventory."

✓ Grammatically correct

Formal & Business

Encyclopedias

Science

News & Media

Wiki

Human-verified examples from authoritative sources

Exact Expressions

52 human-written examples

LONG-TERM DEBT / NET CURRENT ASSETS: must not exceed net current assets (current assets minus current liabilities).

Forbes

Current assets include cash, inventory and receivables.

Cornell University

Assets are ordinarily subdivided into current assets and noncurrent assets.

Encyclopedia Britannica

The difference between total current assets and total current liabilities is known as net current assets, or working capital.

Encyclopedia Britannica

Few of Franklin's current assets include home mortgages.

The New York Times

…basic categories of investments are current assets and fixed assets.

Britannica

Human-verified similar examples from authoritative sources

Similar Expressions

8 human-written examples

Non-current assets are defined as any asset which is not a current asset.

WikiHow

Determine the total Non-current Assets.

WikiHow

Next, list the non-current assets.

WikiHow

Include a subtotal of the non-current assets and call it "Total Non-Current Assets".

WikiHow

Subtract the total non-current assets from the value above.

WikiHow

Expert writing Tips

Best practice

When discussing a company's financial health, clearly differentiate between "current assets" and non-current assets to provide a comprehensive picture of its liquidity and solvency.

Common error

Don't assume that a high level of "current assets" automatically translates to high profitability. While it indicates strong short-term financial health, profitability depends on how efficiently these assets are used to generate revenue.

Linguistic Context

The phrase "current assets" functions as a noun phrase, typically serving as the subject or object in financial statements and discussions. Ludwig AI confirms its widespread use in defining a company's liquid resources. The examples provided showcase its role in financial analysis and reporting.

Expression frequency: Very common

Frequent in

Formal & Business

30%

News & Media

25%

Science

20%

Less common in

Encyclopedias

10%

Wiki

10%

Academia

5%

Ludwig's WRAP-UP

In summary, "current assets" refers to a company's resources that are expected to be converted into cash within a year, as corroborated by Ludwig AI. As a noun phrase, it plays a vital role in business, finance, and accounting. It’s used to define, quantify, and analyze a company's short-term liquidity, and is commonly found in formal and professional contexts, particularly in business reports, financial analyses, and news articles. Differentiating it from "non-current assets" is crucial for assessing a company’s financial standing, with best practices emphasizing clarity in financial discussions and cautioning against equating liquidity with overall profitability.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

liquid assets

Focuses on the ease and speed of converting assets into cash, emphasizing liquidity.

short-term assets

Highlights the short-term nature of these assets, emphasizing their expected conversion to cash within a year.

working capital

Emphasizes the operational aspect of these assets in the context of a company's day-to-day activities.

circulating capital

Focuses on the continuous flow and turnover of these assets within a business cycle.

cash equivalents

Specifies assets that are very close to being cash, highlighting their immediate availability.

near-cash assets

Similar to cash equivalents but may include assets slightly less liquid.

quick assets

Highlights assets that can be quickly converted to cash, typically excluding inventory.

liquid resources

Broader term encompassing all readily available financial resources.

operating assets

Assets directly involved in the company's primary business operations.

current resources

Refers to resources available in a short time period.

FAQs

What are examples of "current assets"?

Examples of "current assets" include cash, accounts receivable, inventory, marketable securities, and prepaid expenses.

How do you calculate the current ratio using "current assets"?

The current ratio is calculated by dividing "current assets" by current liabilities. This ratio indicates a company's ability to pay off its short-term obligations.

What's the difference between "current assets" and "non-current assets"?

"Current assets" are expected to be converted into cash within one year, while "non-current assets", like property, plant, and equipment (PP&E), have a lifespan of more than one year.

Why are "current assets" important for a company?

"Current assets" are essential for meeting a company's short-term obligations, funding day-to-day operations, and maintaining financial stability. They are a key indicator of a company's liquidity.