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Net Financial Debt (NFD)

Last updated: Oct 12, 2022

What is Net Financial Debt? 

Net Financial Debt is a company’s non-operational debt that considers cash and short-term securities against financial debt.

Alternate names: Net Debt

Net Financial Debt Formula

ƒ Sum(Long Term Debt + Current Portion Debt + Dividends Payable + Notes Payable - Cash) + (Short Term Investments)

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How to visualize Net Financial Debt?

Use a summary chart to visualize your Net Financial Debt data and compare it to a previous time period.

Net Financial Debt visualization example

Net Financial Debt

$14k

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1.05

vs previous period

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Summary Chart

Here's an example of how to visualize your current Net Financial Debt data in comparison to a previous time period or date range.
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Net Financial Debt

Chart

Measuring Net Financial Debt

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More about Net Financial Debt

Net Financial Debt allows the company to count its cash and short-term securities as credit towards their financial debt. This allows the company to see a clearer picture of their actual financial debt.

Ken Faulkenberry has written a good article on Net Financial Debt and why it's an important liquidity and leverage metric to understand.

 

Metrics related to Net Financial Debt

Financial DebtDebt to Equity RatioOut of Cash Date

Comparisons

Financial Debt vs Net Financial Debt

Related Tags

Finance
Chief Financial Officer
Controller