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Current Liabilities

Department:

Finance

Current Liabilities

$

Calculation

Current Liabilities = Sum of all debts and financial obligations payable within one year

DESCRIPTION

Current Liabilities are financial obligations a company is due to pay within the coming year, including accounts payable, short-term debt, and other accrued expenses.

Purpose

The primary purpose of Current Liabilities is to provide insight into the short-term debt obligations and operational expenditures due within a year, reflecting the company’s immediate financial commitments.

Interpretation

Did you get it right

Optimal:
Indicates that the company is effectively managing its short-term financial obligations, maintaining a balance that supports continuous operation without financial strain.
Alert:
May suggest that the company is over-leveraged or facing liquidity challenges, potentially impacting its ability to finance ongoing operations or negotiate favorable terms. Positive Working Capital reflects the company's ability to meet these obligations.
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06/15/2024 03:46:01 am