Total Assets

Quick Definition

A summation of all the assets a company owns.

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Explanation of Total Assets

Listed on the Balance Sheet, this figure represents the total assets of the company. Total Assets include the Total Current Assets, Net Property Plant and Equipment, and any other miscellaneous assets the company may have.

Importance of Total Assets

Total Assets in and of themselves are important, but it is even more important to look at what makes up the Total Assets and how these figures change over time. For example a company with a higher amounts of cash and marketable securities, but low amounts of inventory over time is one that is becoming more efficient in its asset-handling practices and is generally a good sign.

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