Net Debt Calculator
Net Debt Calculator
This net debt calculator helps you compute the net debt using the formula:
Net debt = Short-term debt + Long-term debt – Cash and equivalents
Below is a screenshot of the net debt calculator:
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Net debt is a financial liquidity metric that measures a company’s ability to pay all its debts if they were due today and whether the company is able to take on more debt. In other words, net debt compares a company’s total debt with its liquid assets.
Formula for Net Debt
Net debt = Short-term debt + Long-term debt – Cash and equivalents
where:
- Short-term debts are financial obligations that are due within 12 months. Common examples of short-term debts include accounts payable, short-term bank loans, lease payments, wages, and income taxes payable.
- Long-term debts are financial obligations that are due beyond a 12-month period. Common examples of long-term debts include bonds, lease obligations, contingent obligations, notes payable, and convertible bonds.
- Cash and cash equivalents are the most liquid assets of a company. Common examples of cash and cash equivalents include marketable securities, commercial paper, treasury bills, and bank accounts.
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Additional Resources
CFI is a global provider of financial modeling courses and of the FMVA Certification. CFI’s mission is to help all professionals improve their technical skills. If you are a student or looking for a career change, the CFI website has many free resources to help you jumpstart your Career in Finance. If you are seeking to improve your technical skills, check out some of our most popular courses. Below are some additional resources for you to further explore:
The Financial Modeling Certification
Analyst Certification FMVA® Program
CFI is a global provider of financial modeling courses and of the FMVA Certification. CFI’s mission is to help all professionals improve their technical skills. If you are a student or looking for a career change, the CFI website has many free resources to help you jumpstart your Career in Finance. If you are seeking to improve your technical skills, check out some of our most popular courses. Below are some additional resources for you to further explore:
The Financial Modeling Certification
Below is a break down of subject weightings in the FMVA® financial analyst program. As you can see there is a heavy focus on financial modeling, finance, Excel, business valuation, budgeting/forecasting, PowerPoint presentations, accounting and business strategy.
A well rounded financial analyst possesses all of the above skills!
Additional Questions & Answers
CFI is the global institution behind the financial modeling and valuation analyst FMVA® Designation. CFI is on a mission to enable anyone to be a great financial analyst and have a great career path. In order to help you advance your career, CFI has compiled many resources to assist you along the path.
In order to become a great financial analyst, here are some more questions and answers for you to discover:
- What is Financial Modeling?
- How Do You Build a DCF Model?
- What is Sensitivity Analysis?
- How Do You Value a Business?
Excel Tutorial
CFI is a global provider of financial modeling courses and of the FMVA Certification. CFI’s mission is to help all professionals improve their technical skills. If you are a student or looking for a career change, the CFI website has many free resources to help you jumpstart your Career in Finance. If you are seeking to improve your technical skills, check out some of our most popular courses. Below are some additional resources for you to further explore:
The Financial Modeling Certification
to take your career to the next level and move up the ladder!
