How to Calculate Current Assets
- 1). Make a list of assets. If calculating current assets for a public company, obtain the Balance Sheet for the company for a complete listing of assets. You can download the Balance Sheet from your favorite investment research site or the company website.
- 2). List assets in order of liquidity. Liquidity is not determined by value; it is a function of how fast the asset can be converted to cash. For example, the most liquid asset is cash, followed by money market or savings accounts. Real estate or equipment is considered to be a hard or illiquid asset as it takes longer to sell.
- 3). Determine those assets which can be sold or converted to cash in less than one year. These include 401k plans, mutual funds, or the cash value of a life insurance policy.
- 4). Sum all values determined in Step 3 for Total Current Assets.