Net debt
Total debt less cash and cash equivalents.
Formula
Cash and short-term deposits are subtracted from total debt. A negative result means a net cash position.
How to read the number
It is net debt that gets divided by EBITDA to judge how many years the business would need to repay what it owes.
When the metric lies
Where it is used
The metric is calculated across every security in the catalogue and appears on the instrument card, in the multiples table and in the screener.
Also known as: net debt