Where in a financial report do I find net debt?
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Re: Where in financial report do I find net debt?
Go to the balance sheet.
Take all the debt (short & long-term)...i.e. "total debt" and any preferred equity...and subtract out the cash and equivalents.
The debt left over is the net debt. i.e. The amount of debt, net of the cash holding.
Hi all, just wondering where is the number for net debt in financial reports? I'm getting a little confused. Beginner trader!
Cheers
Hayden
Go to the balance sheet.
Take all the debt (short & long-term)...i.e. "total debt" and any preferred equity...and subtract out the cash and equivalents.
The debt left over is the net debt. i.e. The amount of debt, net of the cash holding.
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as above to find net debt.
Also, depending on the type of business, you might also like to subtract the inventory figure (or a portion of it). if it is the type of company that can turn inventory into cash readily. eg capilano honey.
This can give you a clearer picture of a companies financial position or its liquidation value.
If it's a company you suspect has slow moving or obsolete inventory, you might want to discount some of the inventory.
Also, depending on the type of business, you might also like to subtract the inventory figure (or a portion of it). if it is the type of company that can turn inventory into cash readily. eg capilano honey.
This can give you a clearer picture of a companies financial position or its liquidation value.
If it's a company you suspect has slow moving or obsolete inventory, you might want to discount some of the inventory.
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