Long-Term Debt

Corporate Debt Corporate Finance Financial Terms Dictionary

Contents

Long-term debt is debt with a maturity of more than one year and is often treated differently from short-term debt.

For the issuer, long-term debt is a liability that needs to be repaid, and holders of debt (such as bonds) account for it as an asset.
Long-term debt obligations are a key component of business solvency ratios, which are analyzed by stakeholders and rating agencies when assessing solvency risk.