What is Net Debt?
Net debt is a financial metric used to assess a company's financial health and leverage. It represents the difference between a company's total debt and its cash and cash equivalents. In other words, net debt shows how much debt a company would have if it were to pay off all of its debt using its available cash and cash equivalents.
A positive net debt indicates that a company has more debt than cash and cash equivalents, suggesting that it may have liquidity challenges or be highly leveraged. Conversely, a negative net debt indicates that a company has more cash and cash equivalents than debt, which may indicate strong liquidity and financial health.
Net debt is commonly used by investors, analysts, and creditors to assess a company's ability to meet its debt obligations and its overall financial risk profile. It provides a clearer picture of a company's financial position than simply looking at total debt alone.
How to Calculate Net Debt?
Net Debt calculator uses Net Debt = Gross Debt-Cash and Cash Equivalents to calculate the Net Debt, The Net Debt is a financial metric that represents the difference between a company's total debt and its cash and cash equivalents. Net Debt is denoted by ND symbol.
How to calculate Net Debt using this online calculator? To use this online calculator for Net Debt, enter Gross Debt (GD) & Cash and Cash Equivalents (CCE) and hit the calculate button. Here is how the Net Debt calculation can be explained with given input values -> 55000 = 140000-85000.