Net debt
Interest-bearing debt less cash and cash equivalents.
Plain languagePractical exampleConnected reading
01
What is it?
Interest-bearing debt less cash and cash equivalents.
02
Why does it matter?
It is a key input for assessing leverage and repayment capacity.
03
How should it be read?
Review leases, restricted cash, financial investments and currency composition.
04
Common mistake
Assuming every unit of cash is freely available for debt repayment.
A simple example
Debt of 500 million and available cash of 140 million imply net debt of 360 million.