Noncurrent liabilities are liabilities that appear on a company’s balance sheet that are not due to be paid off in the short term (in 12 months or less). These liabilities are indicating liabilities that are due in more than one year, normally as long as 10-30 years. In plain English, noncurrent liabilities are a company's long-term financial obligations. Examples of noncurrent liabilities include mortgage loans, bonds payable, long-term financial notes and deferred revenue.

Noncurrent liabilities such as long-term loans, deferred revenue and other obligations are those items that will remain unpaid for more than a year and for which repayment must be made over a period of years. Noncurrent liabilities become due at some future date, which is usually beyond one year from the date on the balance sheet. They are debts or legal obligations that generally require periodic payment to a creditor or other obligee over a period of time.

Noncurrent liabilities are an important part of a company’s overall financial health and can signal to investors or lenders whether a company is in a secure financial position or if there are troubles ahead. They are commonly measured by the debt-to-assets and debt-to-capital ratios, which help investors assess how well a company’s liabilities are being managed. These ratios indicate a company’s level of financial leverage—the degree to which the company is utilizing debts rather than equity to finance operations.

Investors and lenders alike will keep an eye on a company’s noncurrent liabilities to ensure that the company is not overburdened with too much debt. If the value of a company’s noncurrent liabilities is too high relative to its assets, this could signal that the company may have difficulty making repayments in the future. As a result, investors or lenders may hesitate to lend to the company or may increase the cost of borrowing funds.

Overall, noncurrent liabilities are an integral part of the balance sheet and are important to how well a company is managing its financial obligations. Companies should take into consideration the impact of their current and future noncurrent liabilities on their overall financial health and look carefully at how well their ratio of liabilities to assets is being managed in order to remain in good financial shape.