Net Financial Debt

Financial debt of a company after its ending cash balance has been subtracted. If a company has 50 million in financial debt, but 30 million in cash, the net financial debt is 20 million in financial debt. Because a company could use to use its cash immediately to pay off portions of its debt, this illustrates when a company is in less trouble than it appears.

Formula

YCharts calculates this formula by subtracting Cash and Short Term Investments from Financial Debt.

Related Terms Financial Debt