Net Debt
A metric that shows a company's overall debt situation by netting the value of a company's liabilities and debts with its cash and other similar liquid assets.
Calculated as:
Investopedia Says:
When investing in a company, one of the most important factors you need to consider is how much debt the company is carrying. Here are some questions to ask yourself when analyzing a company's debt: How much debt really exists? What kind of debt is it (long/short-term maturities)? What is the debt for (repay or refinance old debts)? Can the company afford the debt if it runs into financial trouble? And, finally, how does it compare to the debt levels of competing companies? Related Terms:
Acid-Test Ratio
Cash and Cash Equivalents
Debt
Debt Limitation
Debt Ratio
Debt Ratio
Debt Service
Debt-Service Coverage Ratio - DCSR
Debt/Equity Ratio
Leverage |