Current Assets
Resources expected to be converted to cash or consumed within one year, listed at the top of the balance sheet.
What is Current Assets?
Current assets are a company's short-term resources expected to be converted to cash, sold, or consumed within one year or within the company's operating cycle, whichever is longer. They are listed in order of liquidity on the balance sheet and typically include cash and cash equivalents, short-term investments, accounts receivable, inventory, and prepaid expenses. Current assets are a key component of liquidity analysis — particularly the current ratio and quick ratio — because they represent the resources available to meet near-term obligations. A healthy level of current assets relative to current liabilities indicates financial stability.
Example
Apple Inc.'s balance sheet as of September 2024 reported current assets of approximately $152 billion, including $29 billion in cash and equivalents, $35 billion in short-term marketable securities, $33 billion in accounts receivable, and $7 billion in inventories. These assets compared favorably to current liabilities of $176 billion, resulting in a current ratio near 0.87 — manageable given Apple's strong and predictable cash generation.