Financial Debt

Date created: Feb 20, 2019  •   Last updated: Sep 27, 2019

What is Financial Debt?

Financial Debt is a company's non-operational debt. With low interest rates and a supply of lenders, debt in non-financial corporations has steadily risen in the past 15 years, benefitting some companies, but putting others at risk.

Alternate names: Gross Debt

Formula

ƒ Sum(Long Term Debt + Current Portion Debt + Dividends Payable + Notes Payable)

Financial Debt

Start tracking your Financial Debt data

Use Klipfolio PowerMetrics, our free analytics tools, to monitor your data.

How does this work?

Follow the steps below in order to get your instant metric

Step 1 - Choose your preferred service
Step 1Choose your preferred service
Step 2 - Create your free Klipfolio PowerMetrics Account
Step 2Create your free Klipfolio PowerMetrics Account
Step 3 - Connect your data and get your metric instantly
Step 3Connect your data and get your metric instantly

More about this metric

A company's non-operational debt may not be critical to a company’s operations. For example, notes payable are written obligations to creditors in exchange for funds and do not have an immediate impact on operations.

That being said, the structure of financial debt can be complex and may lead to serious consequences for the business.