Net debt
Total debt net of available cash. Measures true leverage: if negative, the company holds more cash than debt, i.e. it is in a net cash position.
Net debt = Total debt − Cash & short-term investments
Financial debt minus cash and short-term investments: what would still be owed if all available cash were used tomorrow to cancel loans. When the result is negative it's called net cash — the company holds more money than debt.
It's the right figure for judging risk, but with a nuance that often gets skipped: not all cash is available. A good part may sit in foreign subsidiaries, be committed to working capital, or be taxed if repatriated. And since IFRS 16, leases appear on the balance sheet, so the debt of a company that rents its premises has risen without its real risk changing — be careful comparing against pre-2019 figures.
Where to see it on ValuatePad
Year by year, for every company, in the tab Debt management.