Current Portion of Long-Term Debt

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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.
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Debt: Long term debt (including liability for capital leases) plus short term debt plus current portion of long term debt. May also be adjusted to include other long term obligations, such as leases and pensions.
As of the end of September 2014, JG Summit had cash and cash equivalent of P32.5 billion, current available-for-sale investments of P10.4 billion, and financial assets at fair value through profit or loss of P17.3 billion, which when combined more than covered short-term debt (including current portion of long term debt) of P45.2 billion.
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