Leverage
What is Net Debt?
Net debt subtracts cash holdings from total debt to show a company's true indebtedness, the amount of debt that isn't backed by cash reserves.
Formula
Net Debt = Total Debt - Cash & Cash Equivalents
How to Interpret
Negative net debt means the company has more cash than debt, a very strong position. Essential for EV calculations.
Typical Ranges
Negative (net cash) is ideal. Compare Net Debt/EBITDA for relative leverage.
Find Stocks Using This Metric
Use the Equiscale Stock Screener to filter US or Indian stocks by Net Debt.