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.

Learn More in the Academy

Find Stocks Using This Metric

Use the Equiscale Stock Screener to filter Indian stocks by Net Debt.

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