Average Annual Current Maturities

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.

BREAKING DOWN '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.