Balance Sheet & Working Capital

Short-Term Debt

Measures the relationship between financial burden and its coverage and the company's ability to pay. Its purpose is to estimate resilience under profit declines, higher rates, maturities and refinancing needs.

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Short-Term Debt

shortTermDebt · Balance Sheet & Working Capital

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Definition: Measures the relationship between financial burden and its coverage and the company's ability to pay. Its purpose is to estimate resilience under profit declines, higher rates, maturities and refinancing needs.
Uses: Key in utilities, real estate, industrials, telecom, roll-ups and cyclicals. In banks and insurers it must be read with sector-specific regulatory ratios. Complement with maturities, covenants, interest coverage, FCF, liquidity and net debt.