Angie · learn
Total debt
Short-term plus long-term borrowings, before any cash is netted off.
A fuller explanation of this one is still being written. The definition above is the short answer.
See also
- Net debt — Positive means a net borrower, negative means net cash. Subtracted from enterprise value to reach what shareholders own.
- Cost of debt — The implied interest rate the company actually pays. Applied after the tax shield in the WACC, because interest is tax-deductible and equity dividends are not.
- Cash — Cash, equivalents and short-term investments. Netted against debt to bridge the value of the business to the value of the shares.
Educational content, not investment advice. Angie explains how a valuation is built so you can judge it yourself. What you do with that is your call.
