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Noncurrent Liabilities

What are ‘Noncurrent Liabilities’

Noncurrent liabilities, also called long-term liabilities, are long-term financial obligations listed on a company’s balance sheet that are not due for settlement within one year – as opposed to current liabilities which are short-term debts.

BREAKING DOWN ‘Noncurrent Liabilities’

Noncurrent liabilities are compared to a cash flow, to see if a company will be able to meet its financial obligations. While lenders are primarily concerned with short-term liquidity and the amount of current liabilities, long-term investors use noncurrent liabilities to gauge whether a company is using excessive leverage.

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