Current Portion of Long-Term Debt


Also found in: Acronyms.

Current Portion of Long-Term Debt

On a balance sheet, the part of a company's long-term debt that must be paid within a year. The current portion of long-term debt is a liability and is recorded on the balance sheet separately from current liabilities and long-term liabilities. Investors may add the current portion of long-term debt to the current liabilities and compare them to current cash flow to determine if the company is at risk of default. A high amount of current portion of long-term debt compared to poor cash flow is considered a sign of poor financial health.
References in periodicals archive ?
Exhibit 1 The Current Portion of Fixed Assets Approach Current asset: Cash $200 Current portion of fixed assets (CPFA) $5,000 Fixed asset: Taxi value (long-term portion) $20,000 Total assets $25,200 Current liabilities $0 Current portion of long-term debt (CPLTD) $4,000 Long-term loan (long-term portion) $16,000 Equity $5,200 Total liabilities + equity $25,200
49 Weighted average shares outstanding: Basic 14,494 14,251 14,460 14,184 Diluted 15,272 15,093 15,075 14,977 Depreciation, depletion, amortization and accretion expense 7,832 5,326 15,356 10,030 Balance Sheet June 30, 2003 Cash $868 Accounts receivable 84,316 Inventories 36,002 Other current assets 12,850 PP&E, net 160,970 Other assets 33,980 Total assets $328,986 Current portion of long-term debt $198 Other current liabilities 60,125 Long-term debt 22,125 Other long-term liabilities 55,223 Equity 191,315 Total liabilities and equity $328,986
Clearly the first quarter of 2003 did not generate substantial profits; however, on March 31, 2003, our long-term debt (including the current portion of long-term debt and capital leases) had been reduced to $27.
Horizon Medical underwent a financial recapitalization during March'02 that reduced current portion of long-term debt by $31.
Full browser ?