Liabilities (gældsforpligtelser)
Liabilities (gældsforpligtelser) are the company's debt to banks, suppliers, public authorities, and other creditors. They are split into current liabilities (due within one year) and long-term liabilities.
The figures behind the term
Source: companydata.dk, CVR and annual reports, updated 28 October 2026
Debt sits on the liabilities side of the balance sheet together with equity. Typical items are bank debt, trade payables, VAT and tax payable, employee obligations, and debt to group companies.
Current vs. long-term
The split matters: large current debt must be paid soon and strains liquidity, while long-term debt buys breathing room. The liquidity ratio compares current assets exactly against current liabilities. A company with low solvency and predominantly short-term debt is vulnerable.
Frequently asked questions
What is included in liabilities?
All debt: bank loans, trade payables, VAT and tax owed, debt to group companies and lease liabilities.
What is the difference between short-term and long-term liabilities?
Short-term liabilities fall due within a year of the balance sheet date. Long-term liabilities fall due later.
How do you tell whether the debt is too high?
Compare it with equity and total assets. The equity ratio shows how much of the balance sheet is funded by equity rather than debt.
Related terms
Liquidity ratio (likviditetsgrad)
The liquidity ratio (likviditetsgrad) shows a company's ability to pay its current liabilities with its current assets. It is calculated as current assets divided by current liabilities, multiplied by 100.
Solvency ratio (soliditetsgrad)
The solvency ratio (soliditetsgrad) shows how large a share of a company's assets is financed with equity. It is calculated as equity divided by the balance sheet total, multiplied by 100.
Balance sheet total (balancesum)
The balance sheet total (balancesum) is the sum of all the company's assets, and equally the sum of equity and liabilities, since the balance sheet balances by definition. It is used as a measure of company size.
Equity (egenkapital)
Equity (egenkapital) is the difference between a company's assets and its liabilities, the owners' share of the company. It typically consists of share capital, retained earnings, and any reserves.