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Net Financial Debt

What is Net Financial Debt?

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

Alternate names: Net Debt

How to calculate Net Financial Debt

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

More about this metric

Net Financial Debt allows the company to count its cash and short-term securities as credit towards their financial debt. This allows the company to see a clearer picture of their actual financial debt.

Ken Faulkenberry has written a good article on Net Financial Debt and why it's an important liquidity and leverage metric to understand.


Metrics related to Net Financial Debt