Current Asset

The Current Asset Fundamental Analysis lookup allows you to check this and other indicators for any equity instrument. You can also select from a set of available indicators by clicking on the link to the right. Please note, this module does not cover all equities due to inconsistencies in global equity categorizations. Please continue to Equity Screeners to view more equity screening tools.
  
Current Asset is important to company's creditors and private equity firms as they will often be interested in how much that company has in current assets since these assets can be easily liquidated in case the company goes bankrupt. However, it is usually not enough to know if a company is in good shape just based on current asset alone; the amount of current liabilities should always be considered.

Current Asset

 = 

Cash

+

Deposits

+

Liquid Assets

Current Asset is all of the company's assets that can be used to pay off current liabilities within the current fiscal period or over the next 12 months. Current Asset includes cash or cash equivalents, accounts receivable, short-term investments, and the portion of prepaid liabilities which will be paid within the next 12 months. Because these assets are easily turned into cash, they are sometimes referred to as liquid assets.

Current Asset In A Nutshell

But first, current assets can be many different things across many industries, particularly regarding liquid assets, which are anything that can be sold quickly and turned into cash. Cash is cash, and deposits is money that is coming in from the different outlets of the company.

Current Assets is cash, plus deposits, plus liquid assets. Current assets are important because you want those to be in healthy proportion to the debt that the company may have. Let us break out each part of the equations to give you a little detail.

Closer Look at Current Asset

Taking a look at cash specifically, this is the most basic because it is what it is, cash. However, you want to know how much cash the company has and if it can live off of that cash if revenue began to slow. Cash is what makes a buinsess tick and should be regarded as one of the most important aspect in the current assets.

Switching over to deposits, think of it like a bank and people depositing money. A business may have money coming in as deposits, but it may not be on the books right now, but with certainty will come. If you want to take that a step further, you can look into the creditworthiness of the business that are depositing money and if they will continue to pay. Deposits could also represent money the company already has as the deposit.

Lastly are liquid assets, and these are assets that can be sold quickly and turned into cash. For some companies, this could be a vehicle or a piece of machinery that is in high demand. You will not take inventory into account because that may not be able to be liquidated quickly. Obviously if items needed to be liquidated, the company could discount the price enough to where they would fly off the shelf, but in your equation that typically is not included.

Current assets should be an important part of your fundamental research as this can give you an idea of how the company is in terms of debt and other relatable factors. You can compare this numbers across others in the industry, giving you an idea of where the company stands in relation to the others. If you still need help, there are many tools and groups out on the internet that can help guide you in the right direction.

All Fundamental Indicators

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect
Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any private could be tightly coupled with the direction of predictive economic indicators such as signals in estimate.
You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

Other Consideration for investing

Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Stocks Directory
Find actively traded stocks across global markets
Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk