Current Portion Of Long-Term Debt (CPLTD)

AAA

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 TERMS
  1. Other Current Liabilities

    A balance sheet entry used by companies to group together current ...
  2. Acid-Test Ratio

    A stringent indicator that determines whether a firm has enough ...
  3. Cash And Cash Equivalents - CCE

    An item on the balance sheet that reports the value of a company's ...
  4. Current Liabilities

    A company's debts or obligations that are due within one year. ...
  5. Current Ratio

    A liquidity ratio that measures a company's ability to pay short-term ...
  6. Liability

    A company's legal debts or obligations that arise during the ...
Related Articles
  1. Debt Reckoning
    Investing

    Debt Reckoning

  2. What is the short/current long-term ...
    Investing

    What is the short/current long-term ...

  3. Introduction To Fundamental Analysis
    Markets

    Introduction To Fundamental Analysis

  4. Advanced Financial Statement Analysis
    Options & Futures

    Advanced Financial Statement Analysis

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center