Current Portion Of Long-Term Debt (CPLTD)

Dictionary Says

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 Says

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.

comments powered by Disqus
Hot Definitions
  1. Private Equity

    Equity capital that is not quoted on a public exchange. Private equity consists of investors and funds that make investments directly into private companies or conduct buyouts of public companies that result in a delisting of public equity.
  2. Valuation

    The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
  3. Valuation

    The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
  4. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
  5. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
  6. Momentum Investing

    An investment strategy that aims to capitalize on the continuance of existing trends in the market. The momentum investor believes that large increases in the price of a security will be followed by additional gains and vice versa for declining values.
Trading Center