Total Debt

Definition: Total Debt is the sum of all interest-bearing obligations a company owes, including short-term debt (notes payable, current portion of long-term de…

Total Debt is the sum of all interest-bearing obligations a company owes, including short-term debt (notes payable, current portion of long-term debt, commercial paper, bank lines of credit) and long-term debt (bonds payable, long-term notes, term loans, mortgage payable, capital/finance lease liabilities). Total Debt is narrower than Total Liabilities — it excludes non-interest-bearing operating obligations like accounts payable, accrued expenses, deferred revenue, and income taxes payable. Total Debt is the focus of credit-analysis ratios such as Net Debt, Debt-to-EBITDA, and Capitalization Ratio.