Total Liabilities Definition and Explanation

Our Financial Analysis Success Kit is Ready!

Click to take a closer look at the Financial Analysis Success Kit Click the button to learn more about the Financial Analysis Success Kit Click the button to learn more about the financial analysis success it

Why you should take a look at the Financial Analysis Success Kit:

We've combined all our highly popular financial analysis tools into one mega-financial-analysis-kit that will save you hundreds of dollars if purchased separately. The kit contains 9 files packed with the most important financial ratio analysis tools you can find to help rocket your way to mastering financial analysis. The kit includes:

  1. The eBook "Learn Ratio Analysis In Minutes"

  2. The Learn Financial Ratio Analysis Excel Spreadsheet (2 versions!)

  3. A BONUS...Our eBook of "Key Financial Statement Terms"

  4. Another HUGE BONUS...Five-Part Financial Ratio Cheat Sheet Series

The result? You get all these professionally created tools for a great low price.

Learn more on our product page:

Take a Look

Quick Definition

A summation of all company obligations, both short and long term.

[sc:kit03 ]

Explanation of Total Liabilities

Listed on the Balance Sheet, this figure represents all the obligations of the company. Total Liabilities include the Total Current Liabilities, Long Term Debt, and any other smaller and miscellaneous liabilities the company may have listed separately.

Importance of Total Liabilities

Total Liabilities in and of themselves are important, but it is even more important to look at what makes up the Total Liabilities and how these figures change over time. Looking at the accompanying notes describing what makes up the Long Term Debt and Short Term Debt will help you determine if the each debt is beneficial or detrimental.