Current Liabilities Definition | Finance Strategists | Less Than 3 Minutes!

Current liabilities are short-term financial obligations that are due either in one year or within the company’s operating cycle. Current liabilities are different from long-term liabilities, which refer to debts or obligations that are due in more than a year.

Current liabilities are generally a result of operating expenses rather than longer term investments and are typically paid for by a company’s current assets.

Having an optimal amount of current assets on hand to cover current liabilities is essential to having a healthy cash flow.
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0:00 Current Liabilities Definition
0:24 Current Liabilities Put Simple
0:40 Current Liabilities on the Balance Sheet
1:21 Current Ratio Formula
1:34 Working Capital Formula
1:59 Current Liabilities Question & Application
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