Long-Term Liabilities

Long-Term Liabilities (Definition)

Long-term liabilities are financial obligations of a company that are due more than one year in the future.

Key aspects of long-term liabilities include:

1. Include items such as long-term loans, bonds payable, and pension obligations
2. Recorded on the balance sheet under non-current liabilities
3. Important for assessing a companys long-term financial health and solvency
4. Often used to finance major investments or acquisitions
5. Can impact a companys credit rating and borrowing capacity
6. May have specific covenants or conditions attached
7. Understanding long-term liabilities is crucial for financial planning and risk assessment

Proper management of long-term liabilities is essential for maintaining financial stability and supporting long-term growth strategies.