Net Financial Debt (NFD)
Date created: Oct 12, 2022 • 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.
Net Financial Debt Formula
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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
Summary Chart
Net Financial Debt
Chart
Measuring Net Financial DebtMore 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.
Metric Toolkit
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Use Klipfolio PowerMetrics, our free analytics tool, to monitor your data.
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