Term Out
The transfer of debt within a company's balance sheet without acquiring new debt. This is done through the capitalization of short-term to long-term debt. Investopedia Says:
By changing the characteristic of debt on the balance sheet, companies can improve their working capital situation as well as take advantage of lower interest rates, based upon the projection that they will rise in the future. Related Terms:
Balance Sheet
Current Assets
Current Liabilities
Debt
Long-Term Liabilities
Working Capital |