Fundamental Glossary / Debt & Financial Stability
Long-Term Debt
Borrowings that are not due within the next year.
Formula
Non-current borrowings. The current portion is shown separately under current liabilities and is not part of this balance.
What it means
Long-term debt finances long-lived assets so repayments are spread. Bonds, term loans, and the non-current part of lease liabilities are typical contents.
The interest rate may be fixed or floating. Floating debt ties future interest cover to the rate cycle.
How to read it
Match the repayment schedule to expected cash flow. Long-term debt is only comfortable when the operating cash flow can meet each instalment without a forced refinancing.
What to watch
A covenant breach, or a lender's right to call the loan, can pull long-term debt into current liabilities. The classification depends on conditions at the reporting date.
This note explains the term. It is not a research recommendation, a target price, or a comment on any security. Ratios and regulatory thresholds change; use the latest filing or circular for a live figure.