Balance Sheet & Working Capital

Total Debt

Measures the relationship between financial burden and its coverage and the company's ability to pay. Its purpose is to estimate resilience under profit declines, higher rates, maturities and refinancing needs.

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Total Debt

totalDebt · Balance Sheet & Working Capital

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Definition: Measures the relationship between financial burden and its coverage and the company's ability to pay. Its purpose is to estimate resilience under profit declines, higher rates, maturities and refinancing needs.
Calculation: Short-term debt + long-term debt + lease obligations when applicable.
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.