Total Debt
What is Total Debt?
Total Debt represents all the interest-bearing obligations of the company, regardless of when these obligations are due for payments. These obligations are used to provide liquidity to bridge short-term obligations and finance long-term capital expenditures and operations. Total Debt can be shown as Long Term Debt and Short Term Debt.
Why is Total Debt important?
Total Debt shows how much a company has to pay back to those who have lent them money. Total Debt is important because it shows how much financial pressure is on a company to pay back its creditors or how much debt they’ve been able to access to invest and grow.