6 December 2016 #1 H hng049 Joined 11 November 2015 Posts 18 Reactions 0 Hi everyone. Just wondering what negative net gearing means? I am under the impression net gearing is long-term debt to shareholder equity so how does one get a negative number? Thanks!
Hi everyone. Just wondering what negative net gearing means? I am under the impression net gearing is long-term debt to shareholder equity so how does one get a negative number? Thanks!
6 December 2016 #2 McLovin Joined 2 June 2011 Posts 5,341 Reactions 242 Gross debt is netted off against cash to give net debt. $83m in debt $100m in cash = -$17m in net debt.
Gross debt is netted off against cash to give net debt. $83m in debt $100m in cash = -$17m in net debt.