Current AssetsFinancial Dictionary -> Investing -> Current Assets
On a business's balance sheet, assets will normally be categorized into current assets and long term assets. Current assets go towards funding the day to day operations in the business, aka its working capital.
The figures of a business's current assets are used in many ratios, calculations and for analysis. It is one of the factors that go towards valuing a business and its financial stability.
Ratios like the current ratio and the quick ratio used current assets to determine whether a business is able to meet their current day to day expenses.
During times of liquidation a business's current assets are sold and used to pay off debt and money owed to shareholders, so creditors and investors are actively interested in the value of a company's current assets.