Balance Sheet & Working Capital

Net Debt

Measures the financial debt remaining after deducting cash, cash equivalents and liquid short-term investments. Long-term, strategic and restricted investments are not deducted.

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Net Debt

netDebt · Balance Sheet & Working Capital

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Definition: Measures the financial debt remaining after deducting cash, cash equivalents and liquid short-term investments. Long-term, strategic and restricted investments are not deducted.
Calculation: Total debt - cash and liquid short-term investments.
Uses: Key in utilities, real estate, industrials, telecom, roll-ups and cyclicals. In banks and insurers it must be read with sector-specific regulatory ratios. Complement with maturities, covenants, interest coverage, FCF, liquidity and net debt.