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What Are Current Liabilities?

By Matthew Frankel, CFP – Updated Dec 16, 2024 at 1:06PM

Key Points

  • Current liabilities are debts due within a year, including accounts payable and short-term loans.
  • A high current ratio, above 1, suggests a company can meet short-term financial obligations.
  • Investors use current liabilities and current ratios to assess a company's financial health.

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