Net Debt Calculator

✖Gross Debt is a financial metric that represents the total amount of debt that a company owes.ⓘ Gross Debt [GD]			+10% -10%
✖Cash and Cash Equivalents refer to highly liquid assets that are easily convertible into cash and have a short-term maturity of typically three months or less.ⓘ Cash and Cash Equivalents [CCE]			+10% -10%

✖Net Debt is used to measure a company's overall indebtedness and its ability to meet its financial obligations.ⓘ Net Debt [ND]

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Formula

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Net Debt

Formula

`"ND" = "GD"-"CCE"`

Example

`"55000"="140000"-"85000"`

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Net Debt Solution

STEP 0: Pre-Calculation Summary

Formula Used

Net Debt = Gross Debt-Cash and Cash Equivalents
ND = GD-CCE
This formula uses 3 Variables

Variables Used

Net Debt - Net Debt is used to measure a company's overall indebtedness and its ability to meet its financial obligations.
Gross Debt - Gross Debt is a financial metric that represents the total amount of debt that a company owes.
Cash and Cash Equivalents - Cash and Cash Equivalents refer to highly liquid assets that are easily convertible into cash and have a short-term maturity of typically three months or less.

STEP 1: Convert Input(s) to Base Unit

Gross Debt: 140000 --> No Conversion Required
Cash and Cash Equivalents: 85000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

ND = GD-CCE --> 140000-85000

Evaluating ... ...

ND = 55000

STEP 3: Convert Result to Output's Unit

55000 --> No Conversion Required

FINAL ANSWER

55000 <-- Net Debt

(Calculation completed in 00.004 seconds)

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Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has created this Calculator and 200+ more calculators!

Verified by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

Keerthika Bathula has verified this Calculator and 25+ more calculators!

< 16 Debt Management Calculators

Levered Free Cash Flow

Go Levered Free Cash Flow = Net Income+Depreciation and Amortization-Change in Net Working Capital-Capital Expenditure-Net Borrowing

Present Value of Outstanding Balance

Go Present Value of Outstanding Balance = Existing Payment*(1-(1+Rate of Interest per Annum)^(-Frequency of Payments)/Rate of Interest per Annum)

Home Equity Line of Credit

Go Maximum Line of Credit = Maximum Loan to Value Ratio*Appraised Fair Value of Equity-Outstanding Mortgage Balance

Breakeven Occupancy

Go Breakeven Occupancy Ratio = (Total Operating Expenses+Annual Debt Service)/Potential Gross Income

Average Payment Period

Go Average Payment Period = Average Accounts Payable/(Credit Purchases/Number of Days in Period)

Paid-in-Kind Interest

Go Paid-in-Kind Interest = Paid-in-Kind Interest Rate*Beginning PIK Debt Balance

Senior Debt Ratio

Go Senior Debt Ratio = Senior Debt/EBIT and Depreciation and Amortization

Mortgage Refinance Breakeven Point

Go Mortgage Refinance Breakeven Point = Total Loan Costs/Monthly Savings

Debt Service Coverage Ratio

Go Debt Service Coverage Ratio = Net Operating Income/Annual Debt

Mortgage Constant

Go Mortgage Constant = Annual Debt Service/Total Loan Amount

Solvency Risk Ratio

Go Solvency Risk Ratio = Total Assets/Total Long Term Debt

Loan Constant

Go Loan Constant = Annual Debt Service/Total Loan Amount

Debtor Days

Go Debtor Days = (Accounts Receivable/Credit Sales)*365

Annual Debt Service

Go Annual Debt Service = Principal+Interest Amount

Net Debt

Go Net Debt = Gross Debt-Cash and Cash Equivalents

Overhead Rate

Go Overhead Rate = Overhead Costs/Revenue

Net Debt Formula

Net Debt = Gross Debt-Cash and Cash Equivalents
ND = GD-CCE

What is Net Debt?

Net debt is a financial metric used to assess a company's financial health and leverage. It represents the difference between a company's total debt and its cash and cash equivalents. In other words, net debt shows how much debt a company would have if it were to pay off all of its debt using its available cash and cash equivalents.
A positive net debt indicates that a company has more debt than cash and cash equivalents, suggesting that it may have liquidity challenges or be highly leveraged. Conversely, a negative net debt indicates that a company has more cash and cash equivalents than debt, which may indicate strong liquidity and financial health.
Net debt is commonly used by investors, analysts, and creditors to assess a company's ability to meet its debt obligations and its overall financial risk profile. It provides a clearer picture of a company's financial position than simply looking at total debt alone.

How to Calculate Net Debt?

Net Debt calculator uses Net Debt = Gross Debt-Cash and Cash Equivalents to calculate the Net Debt, The Net Debt is a financial metric that represents the difference between a company's total debt and its cash and cash equivalents. Net Debt is denoted by ND symbol.

How to calculate Net Debt using this online calculator? To use this online calculator for Net Debt, enter Gross Debt (GD) & Cash and Cash Equivalents (CCE) and hit the calculate button. Here is how the Net Debt calculation can be explained with given input values -> 55000 = 140000-85000.

FAQ

What is Net Debt?

The Net Debt is a financial metric that represents the difference between a company's total debt and its cash and cash equivalents and is represented as ND = GD-CCE or Net Debt = Gross Debt-Cash and Cash Equivalents. Gross Debt is a financial metric that represents the total amount of debt that a company owes & Cash and Cash Equivalents refer to highly liquid assets that are easily convertible into cash and have a short-term maturity of typically three months or less.

How to calculate Net Debt?

The Net Debt is a financial metric that represents the difference between a company's total debt and its cash and cash equivalents is calculated using Net Debt = Gross Debt-Cash and Cash Equivalents. To calculate Net Debt, you need Gross Debt (GD) & Cash and Cash Equivalents (CCE). With our tool, you need to enter the respective value for Gross Debt & Cash and Cash Equivalents and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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