Understanding Other Current Assets (OCA) in 2025: Definition, Examples & Price Insights

What Are Other Current Assets (OCA)?

Other Current Assets (OCA) represent a category of valuable resources that a business owns or benefits from, which can be converted into cash within one operating cycle. Unlike common current assets such as cash, accounts receivable, or inventory, these assets are less frequent or less significant, hence classified as 'other.'

These assets appear on the balance sheet as part of a company’s total assets and provide insight into a firm's liquidity beyond the typical asset categories.

Key Highlights

• OCA includes liquid assets that are uncommon or minor in comparison to standard current assets.
• They are listed on the balance sheet and are expected to convert to cash within a year.
• The balance in the OCA account is usually small due to the infrequent or insignificant nature of these assets.

Breaking Down Other Current Assets

Assets on a balance sheet are divided into fixed and current assets. Fixed assets are long-term and tangible, such as buildings or machinery, used in operations over multiple years and are not easily liquidated.

Current assets are short-term assets expected to be sold or used within a year, including cash, marketable securities, accounts receivable, inventory, and prepaid expenses. When assets do not fit these categories, they are grouped as Other Current Assets.

Examples of OCA include advances to employees or suppliers, property held for sale, restricted cash or investments, and the cash surrender value of life insurance policies.

Real-World Example: Microsoft Corp. in 2019

For the quarter ending March 31, 2019, Microsoft reported total assets of $263.28 billion, with current assets comprising 61%. Other Current Assets accounted for $7.05 billion, approximately 4% of its liquid assets, illustrating the relatively small but notable role OCA plays in large corporations.

Additional Insights and Considerations

Often, companies like Microsoft provide limited details about OCA in financial reports, as these assets typically represent a minor portion of liquidity. More detailed explanations, when necessary, are found in financial statement footnotes, especially if significant changes occur between reporting periods.

Since OCA are expected to be converted or disposed of within a year, their value can fluctuate annually based on company performance and spending habits.

Important Note

Assessing the materiality of OCA is crucial because a significant increase may require reclassification into major current asset categories. Transparent classification enhances understanding of a company’s liquidity and financial health.

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