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

By Jeff Siner Sumitomo's acquisition includes all of Crescent's current assets aside from the resort at Palmetto Bluff, totaling 6,400 apartments in 20 communities, 1,700 single-family lots and 1.5 million square feet of commercial square feet. Ely Portillo, charlotteobserver, "Why a major Charlotte developer is selling itself to a Japanese forestry company," 28 Apr. 2018 Sumitomo's acquisition includes all of Crescent's current assets aside from the resort at Palmetto Bluff, totaling 6,400 apartments in 20 communities, 1,700 single-family lots and 1.5 million square feet of commercial square feet. Ely Portillo, charlotteobserver, "One of Charlotte's biggest developers is being bought out by a Japan-based company | Charlotte Observer," 27 Apr. 2018 Wells Fargo will also have to improve risk management, governance, and board oversight practices, and cannot increase its current asset size until the Fed is convinced of the improvements. David Dayen, New Republic, "The Elizabeth Warren Model of Political Leadership," 5 Feb. 2018 Most of the current assets are those of Mr. Paulson and his executives, the investor said. Chris Kirkham, WSJ, "Could Some Puerto Rico Hotels Emerge Stronger After Storms?," 26 Sep. 2017 The aim is to get the plan, just 39.5% funded using current asset values, to 80% funding by 2031. The Economist, "The big squeezeAmerican public pensions suffer from a gaping hole," 5 Oct. 2017 Except that less than four months before the current asset-purchase program is due to end, the Governing Council hasn’t provided any details on the scale of stimulus beyond 2017. Jana Randow, Bloomberg.com, "Draghi’s Next Step Shaped by Views of Investors Kept in the Dark," 6 Sep. 2017

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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The first known use of current assets was circa 1909

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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

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Britannica English: Translation of current assets for Arabic Speakers

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