Current Portion Of Long-Term Debt (CPLTD)
Definition of 'Current Portion Of Long-Term Debt (CPLTD)'A portion of the balance sheet that represents the total amount of long-term debt that must be paid within the next year. The balance sheet has a liability section, which is broken down into long-term and current debt. When a debt payment is set to be made in longer than a year's time, it is recorded in the long-term debt section, and when that payment becomes due within a year, it moves to the "current portion of long-term debt" section. |
|
Investopedia explains 'Current Portion Of Long-Term Debt (CPLTD)'The purpose and importance of this section of the balance sheet is that it gives investors an idea of how much money will be spent this year to resolve the current portion of the long-term debt. This can be compared to the current cash and cash equivalents to measure whether the company is actually able to make the payment. A company with a large current portion and a small cash position has a higher risk of default and should be a warning sign to investors. |
Related Definitions
Articles Of Interest
-
Debt Reckoning
Learn about debt ratios and how to use them to assess a company's financial health. You could save a lot of money! -
What is the short/current long-term debt account on a company's balance sheet?
A lot of confusion can arise with this balance sheet account. After all, how can something be both long and short? Despite appearances, however, this concept is not as complex as one might first ... -
Introduction To Fundamental Analysis
Learn this easy-to-understand technique of analyzing a company's financial statements and reports. -
Advanced Financial Statement Analysis
Learn what it means to do your homework on a company's performance and reporting practices before investing. -
Depreciation: Straight-Line Vs. Double-Declining Methods
Appreciate the different methods used to describe how book value is "used up". -
Financial Statement: Extraordinary Vs. Nonrecurring Items
When it comes to analyzing a company, successful analysts spend considerable time differentiating between accounting items that are likely to recur going forward from those that most likely will ... -
The Basics Of A Financial Analysis Report
Running financial analysis on a company or industry is a key skill every investor must learn and understand how to undertake without which an ineffective financial report and investment recommendation ... -
GAAP And The IFRS Standards Convergence Efforts In 3 Substantial Areas
Understand the specific steps that have been taken in hopes of converging the GAAP and the IFRS accounting standards, despite the philosophically and culturally based methodological differences ... -
Beware False Signals From The P/E Ratio
The P/E ratio is a simple tool for evaluating a company, but no one ratio can tell the whole story. -
Using The Price-To-Book Ratio To Evaluate Companies
The P/B ratio can be an easy way to determine a company's value, but it isn't magic!
Free Annual Reports