Long-term debt refers to financial obligations that are due for repayment after more than one year from the date of the ...

Short-term debt refers to financial obligations, or current liabilities, that are due for repayment within a short period, ...

Long-term D/E ratio = Long-term debt ÷ Shareholder equity Short-term debt also increases a company’s leverage but these liabilities must be paid in a year or less so they're not as risky.