# Net debt

> Total debt less cash and equivalents. A negative figure means the company holds more cash than debt.

Updated Oct 17, 2026.

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](/glossary/total-debt) is as defined in its own entry; [cash and equivalents](/glossary/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.

## Related terms

- [Total debt](/glossary/total-debt.md)
- [Cash and equivalents](/glossary/cash-and-equivalents.md)
- [Debt-to-equity](/glossary/debt-to-equity.md)

All terms: [/glossary.md](/glossary.md)