What are the Total Non-Current Liabilities of a Company?

Total Non-Current Liabilities: TL;DR

The Total Non-Current Liabilities of a company are the obligations that are not due to be settled within the next 12 months or within the company's operating cycle, whichever is longer. They are part of a company's total liabilities, along with current liabilities.

Total Liabilities = Current Liabilities + Non-Current Liabilities

In-Depth Understanding

Non-current liabilities, also known as long-term liabilities, are obligations that a company expects to pay after one year or beyond the normal operating cycle. They often include loans, bonds payable, deferred tax liabilities, and pension obligations. These liabilities are crucial components in understanding a company's financial health as they can affect its liquidity and solvency.

Non-current liabilities are typically used to invest in the company's growth, such as the purchase of fixed assets or to fund expansions. While these liabilities can provide necessary resources for growth, a company with high non-current liabilities relative to its assets or equity may struggle to meet its obligations in the long-term.

Examining non-current liabilities alongside other financial metrics, such as a company's cash flows and earnings, provides a more complete picture of a company's financial health and long-term stability.

Real-world Examples

A Retail Company - Amazon Inc.

For Amazon, non-current liabilities include long-term debt, capital lease obligations, and other long-term liabilities. These have been used to fund the company's rapid expansion and investments in technology and infrastructure.

A Technology Company - Apple Inc.

Apple's non-current liabilities include long-term debt, deferred revenue, and deferred tax liabilities. These have been used to fund activities such as research and development, acquisitions, and share buybacks.

A Manufacturing Company - Ford Motor Company

For Ford, non-current liabilities include long-term debt, pension and other post-employment benefit obligations, and deferred tax liabilities. These have been used to fund operations, investments in new technology, and worker benefits.

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