Fundamental Glossary / Debt & Financial Stability
Short-Term Debt
Borrowings due within a year, including the current portion of long-term loans and working-capital facilities.
Formula
Short-term borrowings + current maturities of long-term debt.
What it means
Short-term debt funds inventory and receivables, or it is simply the slice of a term loan that falls due soon. Commercial paper and cash credit are common Indian forms.
It has to be repaid or rolled within the year. Rollover is a market decision, not a right.
How to read it
A rising share of short-term debt in the total is a refinancing risk, especially if it was used to fund long-term assets. That mismatch is a classic source of stress.
What to watch
Undrawn working-capital lines are liquidity, but they can be cancelled. Do not treat an undrawn limit as cash unless the terms say it is committed.
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.