Definition: The current portion of long-term debt is the amount of noncurrent liabilities that will become due within one year or the current accounting period, whichever is longer. In other words, it’s the amount of long-term liabilities that must be repaid in the current year.What Does ...
A current portion of long-term debt is the amount of long-term debt obligations that have to be settled in the next twelve month...
Definition of Current Portion of Long-Term Debt The current portion of long-term debt is the amount of principal that will be due within one year of the date of the balance sheet. This amount is reported on the balance sheet as one of the company’s current liabilities. (A company in ...
In accounting, long-term debt generally refers to a company’s loans and other liabilities that will not become due within one year of the balance sheet date. (The amount that will be due within one year is reported on the balance sheet as a current liability.) Example of Long-term Debt...
However, this debt ratio is beneficial in determining the amount of leverage the company is using, as it is a comparison of the company's total liabilities to its capital and determine. The risk of long-term debt is different from short-term debt, so investors are changing their gear to ...
What are Noncurrent Liabilities? What is Long-Term Debt? What is a Cash Ratio? What are Current Liabilities? What is a Capital Liability? What is Capital Employed? What is the Accounting Equation? Discussion Comments WiseGeek, in your inbox ...
Ability to repay debt = Current Liabilities + long term Liabilities / main business profit The index is different in terms of computation. The portion of the current liabilities can be calculated as the cost of the enterprise, while the operating profit is deducted. ...
Can debt consolidation save me money? If done wisely, yes. Debt consolidation can help you save money if you get competitive interest rates, a better term and a monthly payment you can handle. About Christopher Boston Christopher (Croix) Boston was the Head of Loans content at MoneyGeek, wit...
What Is the Current Portion of Long-Term Debt? The current portion of long-term debt (CPLTD) refers to the section of a company'sbalance sheetthat records the total amount oflong-term debtthat must be paid within the current year. For example, if a company owes a total of $100,000, ...
All debt instruments provide a company with cash that serves as a current asset. The debt is considered a liability on the balance sheet, of which the portion due within a year is a short term liability and the remainder is considered a long term liability. ...