current assets

plural noun

Definition of current assets

: assets of a short-term nature that are readily convertible to cash

Examples of current assets in a Sentence

Recent Examples on the Web Villere's fund has a current asset allocation of 70% in stocks, 20% in bonds and 10% in cash. Paul R. La Monica, CNN, "Why older investors should still invest like they're Millennials," 8 Feb. 2020 Also, take steps to protect and enhance your biggest current asset — your ability to earn money. Liz Weston | Nerdwallet.com, oregonlive, "Liz Weston: Late starter still can make use of budget skills, focus on retirement," 14 Sep. 2019 To calculate a company's current ratio, go to its balance sheet and divide current assets by current liabilities. Dallas News, "Motley Fool: Skyrocketing Shopify shares, teaching teens about money and this week's trivia," 7 July 2019 Also, take steps to protect and enhance your biggest current asset — your ability to earn money. Liz Weston | Nerdwallet.com, oregonlive, "Liz Weston: Late starter still can make use of budget skills, focus on retirement," 14 Sep. 2019 The foundation's current assets, $1.78 million, and the $2 million in damages will be distributed to various nonprofit groups, including the Children's Aid Society, the United Negro College Fund and the U.S. Holocaust Memorial Museum. Kathryn Watson, CBS News, "New York judge orders Trump to pay $2 million for misusing foundation funds," 7 Nov. 2019 Liabilities due in the next 12 months far exceed current assets and shareholder funds are negative, usually not a good sign. Washington Post, "Uber’s London Taxi Rival Will Cost You Peanuts," 20 Sep. 2019 Also, take steps to protect and enhance your biggest current asset — your ability to earn money. Liz Weston | Nerdwallet.com, oregonlive, "Liz Weston: Late starter still can make use of budget skills, focus on retirement," 14 Sep. 2019 Also, take steps to protect and enhance your biggest current asset — your ability to earn money. Liz Weston | Nerdwallet.com, oregonlive, "Liz Weston: Late starter still can make use of budget skills, focus on retirement," 14 Sep. 2019

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'current assets.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of current assets

circa 1909, in the meaning defined above

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Time Traveler for current assets

Time Traveler

The first known use of current assets was circa 1909

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Statistics for current assets

Last Updated

24 Apr 2020

Cite this Entry

“Current assets.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/current%20assets. Accessed 28 May. 2020.

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More Definitions for current assets

current assets

plural noun

Financial Definition of current assets

What It Is

A current asset is cash or any asset that can be reasonably converted to cash within one year.

How It Works

Current assets typically include categories such as cash, marketable securities, short-term investments, accounts receivable, prepaid expenses, and inventory.

Restricted cash (that is, cash that cannot be withdrawn or used for current operations), depreciable assets, receivables that are not due in 12 months or less, and land are examples of things that are not current assets.

Why It Matters

Current assets are important because they indicate how much cash a company essentially has access to within the next 12 months outside of third-party sources. It is indicative of how the company funds its ongoing, day-to-day operations, and how liquid a firm is. The ratio of current assets to current liabilities is particularly important in judging liquidity.

Source: Investing Answers

More from Merriam-Webster on current assets

Britannica English: Translation of current assets for Arabic Speakers

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