Average Annual Current Maturities

  

Categories: Bonds

Average Annual Current Maturities sounds like a way of measuring the occupancy of a nursing home. But it isn't. Instead, it's a debt term.

It describes the amount of principal on long-term debt a business expects to pay. The figure is calculated by looking at how much time remains on the original loan term. If the number is rising annually, the business is likely taking on more debt. The amount of debt can be compared to the amounts of assets or revenue the company has to determine if the company has too much debt.

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Finance: What is maturity?1 Views

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Finance allah shmoop What is maturity and oh yes the

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irony asking someone It shmoop to read about maturity but

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we'll do our best here So maturity what is it

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Well it's just the date when a debt becomes do

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You buy a thousand dollar bond with a maturity date

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of may thirty one twenty twenty five Also what happens

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on may thirty one twenty twenty five Well that's the

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date you'll get your grand back and you'll have the

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interest for that period as well So if you had

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a six percent bond on that last payment may thirty

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one twenty twenty five trivia question how much would you

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get back Yes ah thousand dollar principle You'd get returned

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but you'd also get what What yes the final payment

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of thirty bucks right cause bonds pay interest twice a

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year six percent sixty dollars a year You get that

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thirty bucks back and that'd be the end of it

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