Definition:

Other Non-Current Liabilities refer to financial obligations of a company that are due beyond one year or the normal operating cycle of the business. These liabilities are not classified under specific categories like long-term debt or deferred tax liabilities.

Examples

Examples of Other Non-Current Liabilities include long-term lease obligations, pension liabilities, deferred revenue expected to be recognized after one year, and long-term provisions for warranties or legal disputes.

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 not classified elsewhere.

How to use the metric:

This metric is used to assess a company's long-term financial obligations and stability. Analysts and investors examine Other Non-Current Liabilities to understand potential future cash outflows and the company's ability to meet these obligations without affecting its operational liquidity.

Limitations:

One limitation is that Other Non-Current Liabilities can be a catch-all category, making it difficult to discern the specific nature of the obligations without additional disclosure. This can obscure the financial analysis if not broken down into more detailed components.

Applies to:

This metric applies to all industries, as most businesses will have some form of long-term obligations that do not fit neatly into other liability categories.

Doesn't apply to:

There are no specific industries where this metric does not apply, as all industries may have non-current liabilities. However, industries with minimal long-term obligations may find this category less significant.

Summary:

Other Non-Current Liabilities encompass a variety of long-term financial obligations that are due beyond one year. While useful for understanding a company's long-term financial commitments, the lack of specificity can limit its utility without further breakdowns. This metric is relevant across all industries, providing insights into a company's future financial obligations.