Net debt is what a company would still owe if it used all its cash and cash equivalents to repay debt.
Formula
net debt = total debt − cash and equivalents
Both figures are from the same balance sheet date. Total debt is as defined in its own entry; cash and equivalents is the balance sheet line.
Reading it
- A negative net debt means the company holds more cash than debt. It is often described as a net cash position.
- Net debt uses cash and equivalents only. Short-term investments and marketable securities are not subtracted, so a company that keeps its liquid funds in securities shows higher net debt here than it might in its own presentation.
- Not all cash is free to use. Some may be held abroad, set aside, or needed to run the business day to day.
When it says "not reported"
Either total debt or cash and equivalents is not reported for the date.