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. In other words, net debt compares a company’s total debt with its liquid assets. Net debt is the amount of debt that would remain after a company had paid off as much as debt as possible with its liquid assets. It is used to determine if a company can repay its obligations if they were all due today and whether the company is able to take on more debt.
Net debt = Short-term debt + Long-term debt – Cash and equivalents
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