total debt same as total liabilities?

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Dreary's picture

I’ve seen total debt defined as current liabilities (AP + short term debt) + long term debt + deferred taxes.

If so, isn’t that same as total liabilities?

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JoeyDVivre's picture

Equity….

I’m Da Church of the faithful, I’m Liao Fengyi, clergywoman mother should have to introduce you to me, I have seen you twice, in which time you are more impressed with everyone I guess in the back of the church at noon to eat noodle face!

mambovipi's picture

Dreary I got a Q for ya, when accounting for off balance sheet debt, what are the effects on D/E?

It’s related to your Q

Dreary's picture

…s o you’re saying total debt does not include off balance sheet debt, but total liabilities do? That makes *some* sense.

mambovipi's picture

no but get this… off balance sheet financing, an analyst adjusts for it by adding the PV of the obligation to current assets and current liabilities (makes sense). However according to a number of q’s I’ve come accross, this increases D/E (which is long-term debt). Don’t understand how current liabilities somehow becomes long term debt.

It’s sorta related to your Q, but I’d love to get a resolution to this…

Super I's picture

mambovipi Wrote:
——————————————————-
> no but get this… off balance sheet financing, an
> analyst adjusts for it by adding the PV of the
> obligation to current assets and current
> liabilities (makes sense). However according to a
> number of q’s I’ve come accross, this increases
> D/E (which is long-term debt). Don’t understand
> how current liabilities somehow becomes long term
> debt.
>
> It’s sorta related to your Q, but I’d love to get
> a resolution to this…

You’re adding the PV of (several) future contingetn payments. Only the PV of the payment due in 1 yr or less gets included in current liabilities. The PV of the other is LTD.

daj224's picture

that is why buy side capitalizes op leases and comnes out with a higher D/E than what company is telling you

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