Average Annual Current Maturities

AAA

DEFINITION of 'Average Annual Current Maturities'

The amount of principal paid on outstanding long-term debt during the upcoming year. Average annual current maturities is a financial figure listed in the notes to the financial statements. If this number is rising annually, it can be assumed that the company is taking on more debt.

INVESTOPEDIA EXPLAINS 'Average Annual Current Maturities'

Current maturities is the amount of time before a debt needs to be paid back. For example, if a loan was taken eight years ago and needed to be paid back in 10 years, the current maturity is two years.

When a company leverages itself through debt, it can be positive; however, too high a debt level could put a strain on cash resources as the company tries to make its interest payments. A prudent investor will monitor whether a company is taking on more debt and compare the debt levels with assets and revenues to see if the company is leveraging itself efficiently.

RELATED TERMS
  1. Degree Of Financial Leverage - ...

    A ratio that measures the sensitivity of a company’s earnings ...
  2. Interest

    1. The charge for the privilege of borrowing money, typically ...
  3. Leverage

    1. The use of various financial instruments or borrowed capital, ...
  4. Leverage Ratio

    1. Any ratio used to calculate the financial leverage of a company ...
  5. Degree Of Operating Leverage - ...

    A type of leverage ratio summarizing the effect a particular ...
  6. Degree Of Combined Leverage - DCL

    A leverage ratio that summarizes the combined effect the degree ...
Related Articles
  1. Reading The Balance Sheet
    Investing Basics

    Reading The Balance Sheet

  2. Analyzing A Bank's Financial Statements
    Fundamental Analysis

    Analyzing A Bank's Financial Statements

  3. Operating Leverage Captures Relationships
    Investing

    Operating Leverage Captures Relationships

  4. What are the risks of having both high ...
    Investing

    What are the risks of having both high ...

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center