Average Annual Current Maturities

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.