Net Debt


Also found in: Acronyms.

Net Debt

A measure of a company's ability to repay all debt if it were called immediately. It is calculated by adding short-term and long-term debt and subtracting all cash and cash equivalents. Many investors use net debt in making investment decisions, as it gives them an idea of a company's financial health and its level of leverage compared to liquid assets. Some industries may have more net debt than others; therefore, investors often compare a company's net debt to others in the same business.
References in periodicals archive ?
Net Debt represents total debt outstanding reduced by cash and short-term investments on hand.
DLF attributed the increase in net debt to one- time outflows such as dividend of ` 450 crore and other payments such as government charges amounting to ` 350 crore.
Net debt is calculated as the difference between total liabilities and total financial assets.
The concept of net debt as a financial statement item has close ties to the modified accrual basis of accounting, (3) where the "bottom line" of the statement of revenue and expenditure is equivalent to the change in net debt and where net debt itself is the balancing amount on the balance sheet (Luder 2000: 126).
The company posted a decrease in net debt by INR214.
companies to do deals has also shown a significant improvement, with data indicating a 20 percent reduction in forward looking net debt to EBITDA over the next year.
Industrial: In North America, both deal appetite and capacity are poised for improvements, with Industrial companies showing a 21 percent increase in forward P/E ratios and a 20 percent reduction in leading net debt to EBITDA.
The company has significant liquidity with an expected negative net debt position and a $300 million undrawn revolver maturing in August 2009, though the revolver will need to be renegotiated in connection with the closing of the transaction.
Homebuilding debt to capitalization was 36% at the end of the fiscal year 2006 first quarter, while net debt to capitalization was 35.
Tenaris ended 2005 with total debt of US$1 billion, cash of US$827 million, and net debt of US$183 million.
Net debt (defined as total debt less cash) decreased by $209 million during the year, with $192 million of this reduction occurring in the fourth quarter.
The sale decreased our net debt by SEK 850 M and generated a capital gain of SEK 398 M.