Definition:

Other Current Liabilities are short-term financial obligations listed on a company's balance sheet that are due within one year. These liabilities are not classified under more specific categories like accounts payable or short-term debt.

Examples:

Examples of Other Current Liabilities include accrued expenses (such as wages payable, interest payable), deferred revenue, taxes payable, and other miscellaneous short-term obligations.

Formula:

There is no specific formula for Other Current Liabilities as it is a category on the balance sheet that aggregates various short-term liabilities.

How to use the metric:

Other Current Liabilities are used to assess a company's short-term financial health and liquidity. By analyzing these liabilities, investors and analysts can understand the company's ability to meet its short-term obligations and manage its working capital effectively.

Limitations:

One limitation of Other Current Liabilities is that it can be a catch-all category, which may obscure the specific nature of the obligations. This lack of detail can make it difficult to assess the exact financial risks associated with these liabilities.

Applies to:

Other Current Liabilities apply to all industries as every business will have some form of short-term obligations that need to be managed.

Doesn't apply to:

There are no specific industries where Other Current Liabilities do not apply, as all businesses, regardless of industry, will have short-term liabilities. However, the composition of these liabilities may vary significantly across different industries.

Summary:

Other Current Liabilities represent a company's short-term financial obligations that are due within one year and are not categorized under more specific headings. They are crucial for assessing a company's liquidity and short-term financial health. While they apply to all industries, the lack of detail in this category can limit the insights it provides into a company's financial risks.