Current Portion of Long-Term Debt(redirected from Current Portion of Long Term Debt)
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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