Net Financial Debt

Date created: Oct 12, 2022  •   Last updated: Oct 12, 2022

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.

Net Financial Debt Formula

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

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How to visualize Net Financial Debt?

Use a summary chart to visualize your Net Financial Debt data and compare it to a previous time period.

Net Financial Debt visualization example

Net Financial Debt


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vs previous period

Summary Chart

Here's an example of how to visualize your current Net Financial Debt data in comparison to a previous time period or date range.
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Net Financial Debt


Measuring Net Financial Debt

More about Net Financial Debt

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.