Fundamental Glossary / Financial Statements

Non-Current Liabilities

Obligations due after twelve months.

Formula

Long-term borrowings, lease liabilities, deferred tax, and long-term provisions.

What it means

Non-current liabilities fund long-lived assets so that the repayment matches the life of the asset. That matching is the point of term debt.

Deferred tax and pension-style provisions are not bank debt. They should not be thrown into a debt-to-EBITDA ratio without a reason.

How to read it

Look at the maturity ladder. A "long-term" label with a wall of repayments in year two is a refinancing story. Staggered maturities are safer.

What to watch

Covenant breaches can make long-term debt current. If the notes mention a waiver, the non-current label depends on the lender's patience.

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.