No, current assets are not the same as total assets. A current asset is any asset that will provide an economic value for or within one year. Total assets accounts for all current assets, but also for long-term fixed assets, intangible assets, and other non-current assets. Therefore a company’s current assets are only one part of its total assets. The ratio between current assets and total assets is known as the “Current Assets to Total Assets Ratio” (CATA Ratio). The Current Assets to Total Assets Ratio formula is: CATA = Current Assets / Total Assets
Is Current Assets the Same as Total Assets? FAQs
Current assets are short-term assets that can be converted into cash within one year, while total assets include both short-term and long-term assets.
A current asset is any asset that will provide an economic value for or within one year.
Total assets refer to all of the resources owned by a business, which are presented in its balance sheet. These assets can include anything from cash and investments to fixed assets like land and buildings.
Total Assets = Current Assets + Noncurrent Assets
No, it is not possible to have more current assets than total assets since the value of a company's total assets is always equal to or greater than its current asset value.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.
