Long-term debt refers to financial obligations — including term loans, bonds, non-convertible debentures (NCDs), debentures, and lease liabilities — that have a maturity of more than one year from the balance sheet date, classified as non-current liabilities on a company's balance sheet. Long-term debt is a primary source of capital for companies funding large capital expenditures, acquisitions, or infrastructure projects, and is typically cheaper than equity due to the tax deductibility of interest and the priority of debt claims in liquidation. Key metrics used to assess long-term debt levels include the debt-to-equity ratio, net debt-to-EBITDA ratio, interest coverage ratio, and debt service coverage ratio (DSCR). For equity analysts and investors on Ventura Securities, the quantum, cost, maturity profile, and covenants of a company's long-term debt are critical inputs in assessing financial risk, valuation (enterprise value), and the sustainability of business growth — particularly in capital-intensive sectors like infrastructure, real estate, metals, and utilities.
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