Definition:

Other Non-Current Liabilities (Excluding Deferred Income) refer to financial obligations that a company is expected to settle in a period longer than one year, excluding deferred income. These liabilities are typically long-term and may include various obligations that do not fit into more specific liability categories.

Examples:

Examples of Other Non-Current Liabilities can include long-term lease obligations, long-term provisions for warranties, pension obligations, and long-term environmental liabilities.

Formula:

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

How to use the metric:

This metric is used to assess a company's long-term financial obligations and can provide insights into the company's future cash flow requirements. Analysts and investors might use it to evaluate the company's financial health and its ability to meet long-term obligations.

Limitations:

One limitation is that this metric can be a catch-all category, making it less transparent. It may include a variety of obligations that are not easily comparable across companies. Additionally, the lack of standardization in reporting can make it difficult to assess the true nature of these liabilities.

Applies to:

This metric applies to most industries, particularly those with significant long-term obligations, such as manufacturing, utilities, and telecommunications, where companies often have long-term contracts and obligations.

Doesn't apply to:

It may be less relevant in industries with minimal long-term obligations, such as certain service industries or technology startups, where liabilities are often short-term and more operational in nature.

Summary:

Other Non-Current Liabilities (Excluding Deferred Income) encompass a variety of long-term financial obligations that a company must settle beyond one year. While useful for understanding a company's long-term financial commitments, the category's broad nature can limit transparency and comparability. It is most applicable in industries with significant long-term obligations and less relevant in industries with primarily short-term liabilities.