Current vs non-current

The balance sheet splits both assets and liabilities into current (within 12 months) and non-current (longer than 12 months). It's a simple split, but it tells you about liquidity and structure.

Current items

Current assets - things expected to convert to cash within a year:

• Cash and bank balances
• Short-term investments (mutual fund units, fixed deposits maturing in <1 year)
• Trade receivables - money owed by customers
• Inventory - raw materials, work-in-progress, finished goods
• Other current assets - advance to suppliers, prepaid expenses

Current liabilities - things due within a year:

• Trade payables - money owed to suppliers
• Short-term borrowings - working-capital loans, current portion of long-term debt
• Other current liabilities - accrued expenses, customer advances

Non-current items

Non-current assets - things held longer than a year:

• Property, plant, equipment (PPE)
• Intangibles (software, brands, patents)
• Goodwill
• Long-term investments
• Deferred tax assets