Long-Term Debt
What is it? Corporate debt that comes due in more than a year. Long-term debtincludes mortgages, banks loans, and bonds. Investors can find it listed on the balance sheet in a company?s annual report.Long-term debt is an important component in the long-term debt-equity ratio, an indicator of a company?s debt level. Debt can be a goodtool for a corporation. It can help the company invest in new plants and equipment that will increase profitability. Too much debt, however, is risky. It locks the company into regular interest payments whether earnings are up or down. If a company stumbles, it may have trouble recovering under a heavy debt load.Added By: Jayden
The Long-Term Debt definition has been viewed 491 Time(s)!
Send To Friends!
If you'd like to send the Long-Term Debt definition to yourself or to your friends/colleagues, just enter the e-mail addresses in the boxes below -We hope you now understand the meaning of Long-Term Debt. If you need any more information on this term, please don't hesitate to contact us.