Short-term Debt = Total Current Liabilities - Long-term Debt
How do I calculate the short term debt?
In order to calculate a company's short-term debt, one needs to review the current liabilities section of the company's balance sheet. This section will list all of the firm's financial obligations that are expected to be paid off within one year. The formula for calculating the short-term debt is:
Short-term Debt = Total Current Liabilities - Long-term Debt. Sourcetable provides an easy-to-use platform for calculating the short-term debt.
What is Short-term Debt?
Short-term debt, or short-term loans, are forms of business financing that are typically used for a period of one year or less. The loan is typically used to purchase inventory, hire additional staff, purchase equipment, or manage cash flow.
What Types of Short-term Loans Can I Take Out?
It's possible to take out multiple types of short-term finance products, including lines of credit, overdrafts, invoice finance, merchant cash advances, and more. Each type of loan has different requirements and repayment terms that should be considered before taking out a loan.
What is the Formula for Calculating Short-term Debt?
The formula for calculating short-term debt is
Short-term debt = Current liabilities - Current assets. This formula can be used to calculate a company's short-term debt obligations and its ability to pay them off.