Total current liabilities is the aggregate amount of obligations that a company must pay within a year. It's a key indicator of a company's short-term liquidity. It includes accounts payable, accrued expenses, short-term debt, and other similar obligations.
A more nuanced understanding of total current liabilities requires a look at its components. These include accounts payable, which are amounts the company owes its suppliers; accrued expenses, which are expenses the company has incurred but not yet paid; short-term debt, which is debt due within a year; and other current liabilities, which can include items such as current portions of long-term debt and taxes payable.
The total current liabilities can give insight into a company's ability to meet its short-term obligations. A company with high total current liabilities relative to its current assets may struggle to meet its obligations and can face liquidity issues.
For Amazon, total current liabilities are calculated by adding up accounts payable (money owed to suppliers), accrued expenses (costs incurred but not yet paid), short-term debt, and other current liabilities (like unearned revenue).
Apple's total current liabilities sum up accounts payable, accrued compensation and benefits, deferred revenue, commercial paper (a type of unsecured, short-term debt), and other current liabilities.
For Tesla, total current liabilities comprise accounts payable, accrued liabilities and deferred revenue, current portion of long-term debt and lease obligations, and other current liabilities.