Total Liabilities

Liabilities are obligations of a company arising from past transactions or events which are expected to reduce assets when they are settled.

Liabilities are one of the three components of a company's balance sheet along with assets, shareholder's equity. The sum of liabilities and shareholder's equity will be equal to a company's assets.

Since a company's assets are generally acquired using a combination of debt and equity, Liabilities ultimately represent the portion of the company's assets that were funded by debt obligations


Total Liabilities = Total Assets - Shareholders Equity