The total liabilities in the company is made up of all short-term liabilities and long-term liabilities.
Examples of short term liabilities include:
- Short-term creditors
Examples of long-term liabilities include:
- Long-term debt
- Deferred taxes
The total liabilities must be compared over several years against the total assets in order for insights to be derived. The net asset value is total assets less total liabilities. A company with a growing net asset value can mean that it has been earning positive profits or its assets have enjoyed revaluation gains.
Read: Net Assets