Is Current Assets the Same as Total Assets?

Written by True Tamplin, BSc, CEPF®

Updated on January 02, 2023

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

Are current assets the same as total assets?

No, current assets are not the same as total assets.

What is a current asset?

A current asset is any asset that will provide an economic value for or within one year.

What are total assets?

Total assets accounts for all current assets, but also for long-term fixed assets, intangible assets, and other non-current assets.

Why aren't current assets the same as total assets?

Therefore a company’s current assets are only one part of its total assets.

About the Author

True Tamplin, BSc, CEPF®

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, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.