Total Liabilities

Definition of 'Total Liabilities'


The aggregate of all debts an individual or company is liable for. Total liabilities can be easily calculated by summing all of one's short-term and long-term liabilities, along with any off balance sheet liabilities which corporations may incur. On the balance sheet, total liabilities plus equity must equal total assets.

Investopedia explains 'Total Liabilities'


A company's total liabilities can be split up into two basic parts, short- and long-term liabilities. Short-term liabilities are typically liabilities which are due within one year or less. Long-term liabilities are those with a time horizon of maturity is past the one year point. Liabilities such as loans, leases and taxes due can fall into either category.



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