Noncurrent Liabilities

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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.

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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 is the formula for calculating compound annual growth rate (CAGR) in Excel?

    The compound annual growth rate, or CAGR for short, measures the return on an investment over a certain period of time. Below ... Read Full Answer >>

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