Deferred tax liability
Tax the company will pay later: accounting profit today exceeds the tax base, and the difference is deferred into the future.
How to read the number
Most often born of accelerated depreciation and revaluations: accounting and tax measurement diverge in timing rather than in amount.
When the metric lies
It is a liability in the accounts, but its due date is undefined and can keep moving out for years. Putting it into net debt alongside a bank loan is wrong.
Also known as: dtl