Net debt: Difference between revisions
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imported>Doug Williamson (Add links.) |
imported>Doug Williamson (Add links.) |
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''Credit risk - liquidity - loan documentation.'' | ''Credit risk - liquidity - loan documentation.'' | ||
An organisation's net debt is its total debt LESS its cash and cash equivalents. | An organisation's net debt is generally defined as its total debt LESS its cash and cash equivalents. | ||
However, definitions may vary in their detail, in different contexts. | |||
Financial covenants, and complying with them, is one very important context. | |||
Here as elsewhere, it is important to spell out assumptions and definitions explicitly, and to reconcile net debt figures reported to other reported figures. | |||
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* [[Capital]] | * [[Capital]] | ||
* [[Cash and cash equivalents]] | * [[Cash and cash equivalents]] | ||
* [[Compliance]] | |||
* [[Covenant]] | |||
* [[Credit risk]] | * [[Credit risk]] | ||
* [[Debt]] | * [[Debt]] | ||
| Line 12: | Line 22: | ||
* [[Debt for equity swap]] | * [[Debt for equity swap]] | ||
* [[Debt service ratio]] | * [[Debt service ratio]] | ||
* [[Financial covenant]] | |||
* [[Liquidity]] | * [[Liquidity]] | ||
* [[Loan agreement]] | * [[Loan agreement]] | ||
* [[Net]] | * [[Net]] | ||
* [[Reconciliation]] | |||
* [[Working capital]] | * [[Working capital]] | ||
Latest revision as of 11:38, 14 June 2023
Credit risk - liquidity - loan documentation.
An organisation's net debt is generally defined as its total debt LESS its cash and cash equivalents.
However, definitions may vary in their detail, in different contexts.
Financial covenants, and complying with them, is one very important context.
Here as elsewhere, it is important to spell out assumptions and definitions explicitly, and to reconcile net debt figures reported to other reported figures.
