Net debt

Also called: net cash

Debt left over if the company used all its cash to pay it off. Negative means it has more cash than debt (net cash).

Formula

Net debt = Total debt − Cash and short-term investments

Worked example

1. Total debt = $5.0bn
2. − Cash & short-term investments = $2.0bn

Result: $3.0bn

How to read it

Enter this figure as net debt in the DCF calculator.

Worked example uses made-up figures for 'Example plc'

See it with real numbers: Any company page → (free account)