The current portion of long-term debt represents the amount of principal on a company's long-term debt that is due within the next 12 months. It is crucial for assessing a company's short-term liquidity and financial health, as it indicates the immediate cash outflows required to meet debt obligations.

Current Portion Of Long-term Debt

current portion of long-term debt

Long-term debt refers to loans and financial obligations that are due for repayment in more than one year, often used by companies to finance large projects or investments. It impacts a company's capital structure, financial leverage, and can influence its credit rating and interest costs over time.

long-term debt

principal on a company's long-term debt

amount of principal

due within the next 12 months

short-term liquidity

Financial health refers to the state of one's personal financial situation, encompassing the ability to manage expenses, save for future goals, and withstand financial shocks. It is a comprehensive measure that includes income, expenditure, savings, investments, and debt management, indicating overall financial stability and security.

financial health

immediate cash outflows

Debt obligations are legally binding agreements in which one party borrows money from another and agrees to repay it with interest over a specified period. They are essential for financing operations and investments but can pose risks if not managed properly, impacting creditworthiness and financial stability.

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