Liabilities

Liabilities are what a company owes to others. These can include loans, unpaid bills, mortgages, debts or other financial responsibilities. They fall under:

• Current or short-term or near-term liabilities: What’s owed as part of usual business operations within a year - such as monthly bills, short-term debt, expenses, wages, and dividends due to be paid to investors
• Non-current or long-term liabilities: What’s owed that are listed on a company’s balance sheet that aren’t due for more than a year. These can be sizeable and include things like deferred taxes, payroll, and retirement funds

Looking at a company’s liabilities is important for understanding whether they are in good financial health now and into the future.