Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
When reading a balnce sheet to find a company's long-term debt, sometimes there are a lot of items that sound like debt, but may not be.
I'm guessing that "Senior Bank bebt" is LT debt.
How about "Senior convertible debt" ?
And "Mandatory convertible debt" ?
These can be very large numbers in relation to assets and equity - are they the same as long-term debt?

Any help will be greatly appreciated.

Thanks -
John N.
Print the post Back To Top
No. of Recommendations: 0
Not quite sure about the definitions of "Senior convertible debt" and "Mandatory convertible debt", but I can give you a quick definition of Long Term (LT) Debt.

I understand LT debt to be debt that is due to be repaid more than one year in the future. Consequently Short Term (ST) Debt would be paid back within one year in the future.

Simple example of the items listed above may be bonds that are to be repaid on 07/01/2007. In my example an amount of the bonds, say $5,000,000 would be considered LT for the Balance Sheet period ends 11/30/2004 - 06/30/2006. On the Balance Sheet date of 07/31/2006 - 06/30/2007 this same $5,000,000 in bonds would be expected to be repaid within one year of the Balance Sheet date therefore would be considered Short Term Debt.

I hope this quick explanation helps your understanding of debt.

DMyers8985
Print the post Back To Top
No. of Recommendations: 0
All that would classify as long term debt. Convertible debt simply has the option of converting into stock at some time in the future and but in the mean time it still is debt has interest payments etc.
Print the post Back To Top