Net debt
Borrowings minus cash. Negative means the company holds more cash than debt.
Worked example · a round-number company
Debt$2.0B−Cash$1.0B=Net debt$1.0BHow to read it
↓Lower is better. Net cash gives room to invest, buy back shares or ride out a bad year.
Keep in mind
- Leases are left out, and missing debt is not treated as zero.