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total debt same as total liabilities?

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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Equity….

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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

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

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…

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.

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