An asset constitutes anything that holds monetary value, whether current or future, to a person or organization. Businesses, governments and non-profits all own assets. So do many people. An asset is ...

These are examples of assets not normally easily disposed of. Key Takeaway: Formally, if an asset isn't expected to be cashable within a year, it isn’t considered a current asset. In business, a ...

Business leaders love to talk about revenues, net profits and assets. After all, those are all positive numbers on a balance sheet that can make a company look great. They are also how a company ...

The current ratio is calculated by dividing a company’s current assets by its current liabilities. Ratios of 1 or higher indicate short-term solvency.

Current ratio measures short-term asset coverage of liabilities, guiding investment decisions. Compare a company's current ratio across years and versus peers to assess financial health. Seasonal ...

Patenting an invention is something to be proud of. From your accountant's perspective, a patent isn't merely an achievement; it's either an asset or an expense. Like copyright and other intangible ...

One key metric that offers valuable insights into a company’s financial health is the return on average assets (ROAA). This financial ratio measures how effectively a company uses its assets to ...

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Thomas J Catalano is a CFP and Registered Investment Adviser with the state of South ...