What is the difference?

Financial Debt vs Net Financial Debt

Financial Debt

Net Financial Debt

What is it?

Financial Debt is a company's non-operational debt. With low interest rates and a supply of lenders, debt in non-financial corporations has steadily risen in the past 15 years, benefiting some companies, but putting others at risk.

Net Financial Debt is a company’s non-operational debt that considers cash and short-term securities against financial debt.

Formula

ƒ Sum(Long Term Debt + Current Portion Debt + Dividends Payable + Notes Payable)
ƒ Sum(Long Term Debt + Current Portion Debt + Dividends Payable + Notes Payable - Cash) + (Short Term Investments)

Published and updated dates

Date created: Oct 12, 2022

Latest update: Oct 12, 2022

Date created: Oct 12, 2022

Latest update: Oct 12, 2022