Total Liabilites
Financials
Industry:
Sector Agnostic
Short Definition
Total Liabilities are everything the company owes to others, summed across current (due within 12 months or the operating cycle) and non-current (due later). Includes payables, accruals, debt, leases, deferred revenue, taxes payable/deferred taxes, and other obligations.
Short Definition
Total Liabilities are everything the company owes to others, summed across current (due within 12 months or the operating cycle) and non-current (due later). Includes payables, accruals, debt, leases, deferred revenue, taxes payable/deferred taxes, and other obligations.
Short Definition
Total Liabilities are everything the company owes to others, summed across current (due within 12 months or the operating cycle) and non-current (due later). Includes payables, accruals, debt, leases, deferred revenue, taxes payable/deferred taxes, and other obligations.
Why it matters for Investors
Solvency & risk: How leveraged the company is and what’s due when.
Cash needs: Signals refinancing or repayment walls ahead.
Valuation context: Used in Enterprise Value (EV = equity + debt + leases + minorities − cash).
Why it matters for Investors
Solvency & risk: How leveraged the company is and what’s due when.
Cash needs: Signals refinancing or repayment walls ahead.
Valuation context: Used in Enterprise Value (EV = equity + debt + leases + minorities − cash).
Why it matters for Investors
Solvency & risk: How leveraged the company is and what’s due when.
Cash needs: Signals refinancing or repayment walls ahead.
Valuation context: Used in Enterprise Value (EV = equity + debt + leases + minorities − cash).
Formula
Practical considerations:
Classification: Split each balance into current vs non-current at every reporting date based on expected settlement.
Debt & leases: Present gross principal; show current vs non-current portions.
Deferred revenue: Classify the portion you expect to recognize within 12 months as current, remainder non-current.
Deferred taxes: US GAAP—generally non-current; IFRS may allocate by reversals policy.
Provisions: Recognize when a present obligation exists and the outflow is probable and estimable; update estimates each period.
Formula
Practical considerations:
Classification: Split each balance into current vs non-current at every reporting date based on expected settlement.
Debt & leases: Present gross principal; show current vs non-current portions.
Deferred revenue: Classify the portion you expect to recognize within 12 months as current, remainder non-current.
Deferred taxes: US GAAP—generally non-current; IFRS may allocate by reversals policy.
Provisions: Recognize when a present obligation exists and the outflow is probable and estimable; update estimates each period.
Formula
Practical considerations:
Classification: Split each balance into current vs non-current at every reporting date based on expected settlement.
Debt & leases: Present gross principal; show current vs non-current portions.
Deferred revenue: Classify the portion you expect to recognize within 12 months as current, remainder non-current.
Deferred taxes: US GAAP—generally non-current; IFRS may allocate by reversals policy.
Provisions: Recognize when a present obligation exists and the outflow is probable and estimable; update estimates each period.
Worked Example
Line item | Amount | Notes |
|---|---|---|
Current Liabilities | ||
Accounts Payable | 6,200,000 | Supplier invoices due ≤ 12 months |
Accrued Expenses | 3,100,000 | Payroll, bonuses, utilities, interest accrued |
Current Portion of LT Debt | 2,500,000 | Lease payments due within 12 months |
Current Lease Liabilities | 900,000 | Income/sales taxes owed |
Taxes Payable | 600,000 | Cash collected for services due ≤ 12 months |
Deferred Revenue (Current) | 2,200,000 | |
Total Current Liabilities | 15,500,000 | |
Non-Current Liabilities | Bank loans, bonds beyond 12 months | |
Long-term Debt (net of Current) | 38,000,000 | Lease obligations > 12 months |
Non-Current Lease Liabilities | 4,600,000 | Timing differences |
Deferred Tax Liabilities | 3,400,000 | Defined benefit obligations |
Pension & Other Benefits | 3,800,000 | Decommissioning/environment |
Asset-retirement obligations | 1,300,000 | Performance due > 12 months |
Deferred Revenue (non-Current) | 2,100,000 | Earn-outs, long-term provisions |
Other Non-Current Liabilities | 900,000 | |
Total Non-Current Liabilities | 54,100,000 | 15.5 + 54.1 |
Total Liabilities | 69,600,000 | |
Notes:
Definition: Obligations the company owes to others. Current = due within 12 months; Non-current = due after 12 months.
Leases (ASC 842 / IFRS 16): Recognize lease liabilities; split between current/non-current.
Debt split: Show the next-12-month principal as current; the rest as non-current.
Deferred revenue: Classify by when you must deliver (≤ 12 months vs > 12 months).
Deferred taxes: Arise from book vs tax timing differences; typically non-current.
Contingencies: Recognize only when probable and estimable; otherwise disclose.
Netting: Don’t offset assets and liabilities unless allowed by policy/standard.
Consistency: Keep the same classification policy period-to-period; disclose changes.
Worked Example
Line item | Amount | Notes |
|---|---|---|
Current Liabilities | ||
Accounts Payable | 6,200,000 | Supplier invoices due ≤ 12 months |
Accrued Expenses | 3,100,000 | Payroll, bonuses, utilities, interest accrued |
Current Portion of LT Debt | 2,500,000 | Lease payments due within 12 months |
Current Lease Liabilities | 900,000 | Income/sales taxes owed |
Taxes Payable | 600,000 | Cash collected for services due ≤ 12 months |
Deferred Revenue (Current) | 2,200,000 | |
Total Current Liabilities | 15,500,000 | |
Non-Current Liabilities | Bank loans, bonds beyond 12 months | |
Long-term Debt (net of Current) | 38,000,000 | Lease obligations > 12 months |
Non-Current Lease Liabilities | 4,600,000 | Timing differences |
Deferred Tax Liabilities | 3,400,000 | Defined benefit obligations |
Pension & Other Benefits | 3,800,000 | Decommissioning/environment |
Asset-retirement obligations | 1,300,000 | Performance due > 12 months |
Deferred Revenue (non-Current) | 2,100,000 | Earn-outs, long-term provisions |
Other Non-Current Liabilities | 900,000 | |
Total Non-Current Liabilities | 54,100,000 | 15.5 + 54.1 |
Total Liabilities | 69,600,000 | |
Notes:
Definition: Obligations the company owes to others. Current = due within 12 months; Non-current = due after 12 months.
Leases (ASC 842 / IFRS 16): Recognize lease liabilities; split between current/non-current.
Debt split: Show the next-12-month principal as current; the rest as non-current.
Deferred revenue: Classify by when you must deliver (≤ 12 months vs > 12 months).
Deferred taxes: Arise from book vs tax timing differences; typically non-current.
Contingencies: Recognize only when probable and estimable; otherwise disclose.
Netting: Don’t offset assets and liabilities unless allowed by policy/standard.
Consistency: Keep the same classification policy period-to-period; disclose changes.
Worked Example
Line item | Amount | Notes |
|---|---|---|
Current Liabilities | ||
Accounts Payable | 6,200,000 | Supplier invoices due ≤ 12 months |
Accrued Expenses | 3,100,000 | Payroll, bonuses, utilities, interest accrued |
Current Portion of LT Debt | 2,500,000 | Lease payments due within 12 months |
Current Lease Liabilities | 900,000 | Income/sales taxes owed |
Taxes Payable | 600,000 | Cash collected for services due ≤ 12 months |
Deferred Revenue (Current) | 2,200,000 | |
Total Current Liabilities | 15,500,000 | |
Non-Current Liabilities | Bank loans, bonds beyond 12 months | |
Long-term Debt (net of Current) | 38,000,000 | Lease obligations > 12 months |
Non-Current Lease Liabilities | 4,600,000 | Timing differences |
Deferred Tax Liabilities | 3,400,000 | Defined benefit obligations |
Pension & Other Benefits | 3,800,000 | Decommissioning/environment |
Asset-retirement obligations | 1,300,000 | Performance due > 12 months |
Deferred Revenue (non-Current) | 2,100,000 | Earn-outs, long-term provisions |
Other Non-Current Liabilities | 900,000 | |
Total Non-Current Liabilities | 54,100,000 | 15.5 + 54.1 |
Total Liabilities | 69,600,000 | |
Notes:
Definition: Obligations the company owes to others. Current = due within 12 months; Non-current = due after 12 months.
Leases (ASC 842 / IFRS 16): Recognize lease liabilities; split between current/non-current.
Debt split: Show the next-12-month principal as current; the rest as non-current.
Deferred revenue: Classify by when you must deliver (≤ 12 months vs > 12 months).
Deferred taxes: Arise from book vs tax timing differences; typically non-current.
Contingencies: Recognize only when probable and estimable; otherwise disclose.
Netting: Don’t offset assets and liabilities unless allowed by policy/standard.
Consistency: Keep the same classification policy period-to-period; disclose changes.
Best Practices
Disaggregate clearly: Separate debt, leases, deferred revenue, accruals, provisions.
Maturity schedule: Provide a debt & lease maturity table (by year) to show cliffs.
Tie-outs: Reconcile debt roll-forwards, lease roll-forwards, deferred revenue movement.
Consistent policies: Document how you classify provisions, leases, and deferred revenue.
Best Practices
Disaggregate clearly: Separate debt, leases, deferred revenue, accruals, provisions.
Maturity schedule: Provide a debt & lease maturity table (by year) to show cliffs.
Tie-outs: Reconcile debt roll-forwards, lease roll-forwards, deferred revenue movement.
Consistent policies: Document how you classify provisions, leases, and deferred revenue.
Best Practices
Disaggregate clearly: Separate debt, leases, deferred revenue, accruals, provisions.
Maturity schedule: Provide a debt & lease maturity table (by year) to show cliffs.
Tie-outs: Reconcile debt roll-forwards, lease roll-forwards, deferred revenue movement.
Consistent policies: Document how you classify provisions, leases, and deferred revenue.
FAQs
Current vs non-current—what’s the cutoff?
Due within 12 months (or operating cycle) = current; otherwise non-current.Are leases liabilities now?
Yes. Under ASC 842 / IFRS 16, most leases create a lease liability (current + non-current).Is deferred revenue a liability?
Yes—obligation to deliver goods/services already billed/paid.Do we net debt against cash?
Not on the balance sheet. Present gross debt; net debt is an analytical metric (debt − cash).Are deferred taxes current? Under US GAAP, deferred taxes are generally non-current. Taxes payable for the current period are current.
FAQs
Current vs non-current—what’s the cutoff?
Due within 12 months (or operating cycle) = current; otherwise non-current.Are leases liabilities now?
Yes. Under ASC 842 / IFRS 16, most leases create a lease liability (current + non-current).Is deferred revenue a liability?
Yes—obligation to deliver goods/services already billed/paid.Do we net debt against cash?
Not on the balance sheet. Present gross debt; net debt is an analytical metric (debt − cash).Are deferred taxes current? Under US GAAP, deferred taxes are generally non-current. Taxes payable for the current period are current.
FAQs
Current vs non-current—what’s the cutoff?
Due within 12 months (or operating cycle) = current; otherwise non-current.Are leases liabilities now?
Yes. Under ASC 842 / IFRS 16, most leases create a lease liability (current + non-current).Is deferred revenue a liability?
Yes—obligation to deliver goods/services already billed/paid.Do we net debt against cash?
Not on the balance sheet. Present gross debt; net debt is an analytical metric (debt − cash).Are deferred taxes current? Under US GAAP, deferred taxes are generally non-current. Taxes payable for the current period are current.
Related Metrics
Source Metrics: Total Assets, Shareholders’ Equity
Components: Current Liabilities, Non-Current Liabilities
Commonly mistaken for:
Operating expenses (P&L vs balance sheet)
Total debt (debt is a subset; total liabilities include leases, deferred revenue, taxes, provisions)
Related Metrics
Source Metrics: Total Assets, Shareholders’ Equity
Components: Current Liabilities, Non-Current Liabilities
Commonly mistaken for:
Operating expenses (P&L vs balance sheet)
Total debt (debt is a subset; total liabilities include leases, deferred revenue, taxes, provisions)
Related Metrics
Source Metrics: Total Assets, Shareholders’ Equity
Components: Current Liabilities, Non-Current Liabilities
Commonly mistaken for:
Operating expenses (P&L vs balance sheet)
Total debt (debt is a subset; total liabilities include leases, deferred revenue, taxes, provisions)
Index