A company's debts or obligations that are due within one year. Current liabilities appear on the company's balance sheet and include short term debt, accounts payable, accrued liabilities and other debts.
Investopedia Says:
Essentially, these are bills that are due to creditors and suppliers within a short period of time. Normally, companies withdraw or cash current assets in order to pay their current liabilities.
Analysts and creditors will often use the current ratio, (which divides current assets by liabilities), or the quick ratio, (which divides current assets minus inventories by current liabilities), to determine whether a company has the ability to pay off its current liabilities.
Related Links:
Learn this easy-to-understand technique of analyzing a company's financial statements and reports. Introduction To Fundamental Analysis
Check out this overview of how to determine and analyze a company's financial position. In Position
Learn about the components of the statement of financial position and how they relate to each other. Reading The Balance Sheet
Learn how to correctly analyze a company's liquidity and beat the average investor. The Working Capital Position
Knowing what the company's financial statements mean will help you to anaylze your investments. Breaking Down The Balance Sheet
Learn the legwork involved in finding out whether your investment can weather a storm. Playing The Sleuth In A Scandal Stock
Read up on some ratios that test whether a company is strong enough to survive tough times. Do Your Investments Have Short-Term Health?




