Investor's Calculator日本語

What Are Current Liabilities?

Current liabilities refers to obligations that are typically due to be paid or repaid within one year.

What the item represents

Current liabilities is a category within the liabilities section of the balance sheet, bringing together obligations — such as accounts payable and short-term borrowings — that are due to be paid or repaid within one year of the fiscal year-end.

Points to watch when reading it

The ratio of current liabilities to current assets (the current ratio) is one of the representative reference points used when assessing short-term liquidity.

This article is provided for general informational purposes only and does not recommend or solicit the purchase or sale of any specific investment method or security. Final investment decisions are your own responsibility.

Frequently Asked Questions

What is included in current liabilities?
Current liabilities include obligations due to be settled within one year, such as accounts payable, short-term borrowings, other payables, and accrued expenses.
Is it dangerous to have a lot of current liabilities?
Rather than judging from the amount of current liabilities alone, it's common to check the level relative to current assets (the current ratio). If current liabilities substantially and persistently exceed current assets, it is sometimes considered a point requiring attention regarding short-term cash flow.

Related terms