What is the meaning of the company's external debt?

The company's external debt refers to the debt formed by the company's borrowing abroad. This kind of debt is usually obtained from foreign banks or other financial institutions to support the company's global expansion plan. Overseas foreign debt can help enterprises expand their business scope, enhance market competitiveness and improve their operating efficiency. However, there are certain risks in foreign debt, which requires careful management by the company.

There are many ways for enterprises to borrow foreign debts, such as ordinary bank credit, corporate bonds, trade financing, retail bonds and so on. It is very important for the company to choose the appropriate loan method, which not only determines the financing cost of the company, but also considers the repayment ability, liquidity risk and exchange rate risk of the company. The company needs to carry out detailed risk management to ensure that it can repay on time and avoid falling into financial crisis.

The company's foreign debts are usually classified as long-term liabilities in the company's financial statements, which need to follow local financial accounting rules and tax laws. Companies need to regularly assess and disclose foreign debts and provide accurate financial information to investors and regulators. At the same time, the company should also actively explore the international financing market, expand diversified financing channels, reduce the company's financing costs and improve the company's financial flexibility.