Is Property, Plants and Equipment a Current Asset?

Written by True Tamplin, BSc, CEPF®

Updated on January 02, 2023

No, property, plants, and equipment, also called PP&E, are not current assets. Current assets are any assets that will provide an economic benefit for or within one year. PP&E are expected to have a useful life significantly longer than a single year. As such, they are considered to be fixed assets. PP&E is also typically illiquid, meaning that they cannot be easily converted into cash.

Is Property, Plants, and Equipment a Current Asset FAQs

Are property, plants, and equipment a current asset?

No, property, plants, and equipment, also called PP&E, are not current assets.

What are current assets?

Current assets are any assets that will provide an economic benefit for or within one year.

How long is the useful life of PP&E?

PP&E are expected to have a useful life significantly longer than a single year.

How liquid is PP&E?

PP&E is also typically illiquid, meaning that it cannot be easily converted into cash.

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.