Short-Term Debt

Short-Term Debt
An account shown in the current liabilities portion of a company's balance sheet. This account is comprised of any debt incurred by a company that is due within one year. The debt in this account is usually made up of short-term bank loans taken out by a company.

The value of this account is very important when determining a company's financial health. If the account is larger than the company's cash and cash equivalents, this suggests that the company may be in poor financial health and does not have enough cash to pay off its short-term debts. Although short-term debts are due within a year, there may be a portion of the long-term debt included in this account. This portion pertains to payments that must be made on any long-term debt throughout the year.


Investment dictionary. . 2012.

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Look at other dictionaries:

  • short-term debt — debt obligations, recorded as current liabilities ( liability), requiring payment within the year. Bloomberg Financial Dictionary * * * short term debt short term debt ➔ debt * * * short term debt UK US noun [C or U] (also unfunded debt) ►… …   Financial and business terms

  • short-term debt — Debt obligations which are due and payable on demand or within a year of issuance. Bonds with short maturity dates (e.g. one or two years) …   Black's law dictionary

  • short-term debt — /ˌʃɔ:t tɜ:m det/ noun a debt which has to be repaid within a few weeks …   Marketing dictionary in english

  • short term debt — loan for a short period of time, loan for a period which is not longer than one year …   English contemporary dictionary

  • Short-term debt or borrowings —   Debt securities or borrowings having a maturity of less than one year.   U.S. Dept. of Energy, Energy Information Administration s Energy Glossary …   Energy terms

  • Short-Term Investment Fund - STIF — A type of fund that invests in short term investments of high quality and low risk. The goal of this type of fund is to protect capital with low risk investments while achieving a return that beats a relevant benchmark such as a Treasury bill… …   Investment dictionary

  • short-term liability — UK US noun [C, usually plural] FINANCE, ACCOUNTING ► a debt that has to be paid back in less than a year: »A large volume of liquid assets allows a bank to meet its short term liabilities. → Compare LONG TERM LIABILITY(Cf. ↑long term liability) …   Financial and business terms

  • Long-term debt — An obligation having a maturity of more than one year from the date it was issued. Also called funded debt. The New York Times Financial Glossary * * * long term debt long term debt ➔ debt * * * long term debt UK US noun [C or U] FINANCE ► money… …   Financial and business terms

  • long-term debt — An obligation having a maturity of more than one year from the date it was issued. Also called funded debt. Bloomberg Financial Dictionary * * * long term debt long term debt ➔ debt * * * long term debt UK US noun [C or U] FINANCE ► money that… …   Financial and business terms

  • medium-term debt — ➔ debt * * * medium term debt UK US noun [C or U] FINANCE ► money that must be paid back between two to ten years after the money is borrowed → Compare LONG TERM DEBT(Cf. ↑long term debt) …   Financial and business terms

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