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.
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
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.
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.