Noncurrent Liabilities

Loading the player...

DEFINITION of 'Noncurrent Liabilities'

A business's long-term financial obligations that are not due within the present accounting year. Examples of noncurrent liabilities include long-term borrowing, bonds payable and long-term lease obligations. Any noncurrent liabilities will be listed on the company's balance sheet.

BREAKING DOWN 'Noncurrent Liabilities'

Investors are interested in a company's noncurrent liabilities because they want to see that it does not have too much debt relative to its cash flow.


The other category of liability that companies incur is called a current liability. Current liabilities are those due within the present accounting year, such as accounts payable, customer advances, taxes payable and the payments due that year on a long-term loan.

RELATED TERMS
  1. Balance Sheet

    A financial statement that summarizes a company's assets, liabilities ...
  2. Cash Flow

    The net amount of cash and cash-equivalents moving into and out ...
  3. Noncurrent Assets

    A company's long-term investments, in the case that the full ...
  4. Accrued Liability

    An accounting term for an expense that a business has incurred ...
  5. Liability

    A company's legal debts or obligations that arise during the ...
  6. Deferred Tax Liability

    An account on a company's balance sheet that is a result of temporary ...
Related Articles
  1. Markets

    Operating Cash Flow: Better Than Net Income?

    Differences between accrual accounting and cash flows show why net income is easier to manipulate.
  2. Investing Basics

    Explaining Noncurrent Liabilities

    Noncurrent liabilities are financial obligations a company owes a year or more into the future.
  3. Personal Finance

    Breaking Down The Balance Sheet

    Knowing what the company's financial statements mean will help you to analyze your investments.
  4. Markets

    Cash: Can A Company Have Too Much?

    Cash is something companies love to have. But if they are not using it there could be problems.
  5. Markets

    What Is A Cash Flow Statement?

    Learn how the CFS relates to the balance sheet and income statement as a part of a company's financial reports.
  6. Economics

    Understanding Cost-Volume Profit Analysis

    Business managers use cost-volume profit analysis to gauge the profitability of their company’s products or services.
  7. Fundamental Analysis

    5 Must-Have Metrics For Value Investors

    Focusing on certain fundamental metrics is the best way for value investors to cash in gains. Here are the most important metrics to know.
  8. Fundamental Analysis

    5 Basic Financial Ratios And What They Reveal

    Understanding financial ratios can help investors pick strong stocks and build wealth. Here are five to know.
  9. Investing Basics

    How to Analyze a Company's Inventory

    Discover how to analyze a company's inventory by understanding different types of inventory and doing a quantitative and qualitative assessment of inventory.
  10. Stock Analysis

    Understanding Chipotle's Financials (CMG)

    Learn about Chipotle Mexican Grill and its financial statements, including metrics such as comparable sales, operating margin and returns.
RELATED FAQS
  1. What is the difference between noncurrent assets and noncurrent liabilities?

    Noncurrent assets are a company's assets that are not expected to be liquidated within one fiscal year, while noncurrent ... Read Full Answer >>
  2. What kinds of liabilities appear on the balance sheet?

    The balance sheet consists of both current and non-current liabilities, which are the debts or obligations that the company ... Read Full Answer >>
  3. When consolidating financials, how do you calculate Enterprise Value in cases that ...

    Minority interests are usually the result of joint ventures or acquisitions where the selling party maintains some interest ... Read Full Answer >>
  4. How are accounts payable listed on a company's balance sheet?

    Accounts payable, the amount of short-term debt payments a business needs to make to its creditors, is listed under the current ... Read Full Answer >>
  5. Is it possible for a company to have a positive cash flow and a negative net income?

    This situation may seem a bit counter-intuitive at first, but it is actually quite common and not too difficult to understand. ... Read Full Answer >>
  6. What items are considered liquid assets?

    A liquid asset is cash on hand or an asset that can be readily converted to cash. An asset that can readily be converted ... Read Full Answer >>
Hot Definitions
  1. Black Swan

    An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult ...
  2. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  3. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
  4. Presidential Election Cycle (Theory)

    A theory developed by Yale Hirsch that states that U.S. stock markets are weakest in the year following the election of a ...
  5. Super Bowl Indicator

    An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in ...
Trading Center