Net Debt Formula

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Net Debt is used to measure a company's overall indebtedness and its ability to meet its financial obligations. Check FAQs
ND=GD-CCE
ND - Net Debt?GD - Gross Debt?CCE - Cash and Cash Equivalents?

Net Debt Example

With values
With units
Only example

Here is how the Net Debt equation looks like with Values.

Here is how the Net Debt equation looks like with Units.

Here is how the Net Debt equation looks like.

55000Edit=140000Edit-85000Edit
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Net Debt Solution

Follow our step by step solution on how to calculate Net Debt?

FIRST Step Consider the formula
ND=GD-CCE
Next Step Substitute values of Variables
ND=140000-85000
Next Step Prepare to Evaluate
ND=140000-85000
LAST Step Evaluate
ND=55000

Net Debt Formula Elements

Variables
Net Debt
Net Debt is used to measure a company's overall indebtedness and its ability to meet its financial obligations.
Symbol: ND
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Gross Debt
Gross Debt is a financial metric that represents the total amount of debt that a company owes.
Symbol: GD
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
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.
Symbol: CCE
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.

Other formulas in Debt Management category

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MRBP=TLCMS
​Go Overhead Rate
OR=OCRev
​Go Debt Service Coverage Ratio
DSCR=NOIAD

How to Evaluate Net Debt?

Net Debt evaluator uses Net Debt = Gross Debt-Cash and Cash Equivalents to evaluate 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 evaluate Net Debt using this online evaluator? To use this online evaluator for Net Debt, enter Gross Debt (GD) & Cash and Cash Equivalents (CCE) and hit the calculate button.

FAQs on Net Debt

What is the formula to find Net Debt?
The formula of Net Debt is expressed as Net Debt = Gross Debt-Cash and Cash Equivalents. Here is an example- 55000 = 140000-85000.
How to calculate Net Debt?
With Gross Debt (GD) & Cash and Cash Equivalents (CCE) we can find Net Debt using the formula - Net Debt = Gross Debt-Cash and Cash Equivalents.
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