all of the following are current assets except This is a topic that many people are looking for. unusual-travel-destinations.com is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, unusual-travel-destinations.com would like to introduce to you Other Current Assets on the Balance Sheet . Following along are instructions in the video below:
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Please refer. A friend today. We at the definition of other current assets as i do in each one of these fundamental analysis. Tutorial videos.
I ll give you the actual definition and then we ll go on and look at an example and see if i can t give them more insight and how to actually use it other current assets are too numerous to list and will vary by company other current assets are non cash. Current assets. Which are expected to be liquidated within the next. 12 months other current assets are listed on a company s balance sheet.
And our component of a firm s total current assets. Now let s look at an example. Other current assets can be found on a company s balance sheet..
That s where you re going to find them. It s going to be listed under assets because it is an asset. They ll also be listed in the current assets. Because it is a current asset.
Meaning that it is going to be liquidated within the next 12 months. And it s also a non cash item. Because it s not yet been liquidated so it s that s why you know all the different terminologies coming from the other current assets category. Anytime.
You see the word other on the balance sheet. Income. Saving you re going to find in several open places. You can find it here in the long term section.
You ll find here and then you know i can show other places as well anytime you see the word other what you want to do is go look at the company s financial statement. They ll look at the actual companies. Where is not the case and looking at yahoo finance..
But you want to go dig into the actual annual report of the 10k and see what they are actually referring to these assets as being that will give you a list and tell you what they are and this is of course going to be net. There s going to be several or many different items within the current assets section. And it ll be different for every company and will vary from one year to the next one period to the next. Some examples can be anything from prepaid expense.
Which is actually it s an asset. It we ll talk about that later it could be maybe a piece of equipment or piece of property or a plant that the company is preparing for sale something they expect to sell within the year. Some of that nature that could be in there you have just many many different things that are in there so it s important to dig into the actual companies report to see what they re actually talking i want to keep an eye on make sure. It s nothing odd going on there as long as it s just normal business activities.
That s fine. This is important again to note that you can see it fluctuate you like here you ve got 17. Billion. The year prior you ve got a period prior you ve got three billion here so you re gonna see fluctuation there as they sell things or different things that can happen and like i said.
There s many different things that can go into here. So it s important that you always want to see the word other anywhere in your balance sheet or your income statement. Going and dig into the company s report and see what they re actually this in there they ll put it for you in the notes section..
And they ll actually have very clearly defined as what s in there you should be noted that other current as assets as typically the last item listed are the current assets that column here and and after that you get to the total current assets. The section here where they simply add up the cash and cash equivalents of short term investments and that receivables the inventory. The current assets. Only other current assets and the net is the total blow on the total current assets now we ll get into it later.
But when you re looking at the current ratio. This is the figure you re going to be using where they re going to be actually analyzing all of the current assets in the situation looking at a quick ratio or something that hr you we re talking about in that case is anything above the or anything net receivables or higher. So they re basically not going to be looking at inventory or other current assets remember assets on a balance sheet are listed in your order of the quiddity. So the further you go down on this list less liquid and item is and the harder.
It would be to turn that item into cash or the longer amount of time it would take to turn that i m into cash. So when you re seeing other current assets. Again this isn t something that i would look at if it was for. Example these numbers were switched and we saw a 40 billion here a 17.
Billion. Here. I d be a bit more concerned because i d want to know i m really quickly dig into these notes and in the annual report of the 10k to figure out what the heck this other current asset is it s worth 40 billion dollars..
And you know what s actually the timeline that we re looking at before singing actually gets liquidated. So this important little element to think about there s whenever you you re glancing at those numbers. It s fine to have items. There that you know you can have a good amount of money in there.
But just know that they re not as liquid is even inventory inventories more liquid than that so just keep that in mind okay. And now you know please take a moment to review our disclaimer. The information provided here it is our opinion. Only under no circumstances do any statements here represent a recommendation to buy or sell securities or make any kind of an investment.
You are responsible for your own due diligence to summarize. We do not provide investment advice. Nor do we make any claim or promises that any information here will lead to a profit loss or any other result. These videos are for educational purposes.
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Other Current Assets, Balance Sheet, Fundamental Analysis, Investing Terminology, Accounting