| Line item | Amount | Ccy | FX→Base |
|---|---|---|---|
| Short-term borrowings | |||
| Current portion of LT debt | |||
| Long-term debt | |||
| Lease liabilities (IFRS-16/ASC 842) | |||
| Convertible debt (principal) | |||
| Convertible equity component (%) | Only the debt portion counts toward debt | ||
| Unfunded pension deficit | |||
| Non-recourse debt | |||
| Bank overdrafts | |||
| Derivatives (debt-like) add-back | |||
| Line item | Amount | Ccy | FX→Base |
|---|---|---|---|
| Cash | |||
| Cash equivalents | |||
| Restricted cash | |||
| Marketable securities | |||
| Trapped/earmarked cash (exclude) |
- Set the policy toggles to match your accounting approach.
- Enter debt and cash amounts. If a line is in a different currency, enter its FX to base.
- Add P&L items (EBITDA, EBIT, Interest) and Equity for ratios.
- Use Sensitivities to test rate shocks and cash/debt actions.
Nettable Cash = Cash + Equivalents + (Restricted if included) + (Securities if included) − Trapped Cash − (Overdrafts if not treated as debt)
Convertible Debt Debt-portion = Principal × (1 − Equity Component %)
Interest Coverage (adj.) = EBIT / (Interest + Variable% × GrossDebt × ΔRate)
Net Debt: definitions, policy choices, and why they matter
Net Debt attempts to capture the amount of interest‑bearing obligations that remain after offsetting readily available cash and cash‑like assets. Policies differ: under IFRS and US GAAP, lease liabilities are recognized on the balance sheet, but analysts may include or exclude them from net debt depending on the question (credit risk vs enterprise value). Similarly, restricted cash might be legally or contractually unavailable and is often excluded in a conservative view.
Marketable securities can be cash‑like if they are liquid and short‑duration; if they are longer‑dated or volatile, some teams exclude them. Overdrafts are another edge case: if they are repayable on demand, some policies net them against cash; others classify them as debt. This tool lets you document your choices with toggles that directly rewrite the formula shown above.
Worked example
Suppose Gross Debt of 13.0m (including leases), Cash 4.0m, Equivalents 0.5m, Restricted 0.15m (excluded), Securities 0.6m (included). With buybacks of 0.5m funded from cash and a +100 bps rate shock on 40% variable debt, Net Debt rises by 0.5m while interest expense increases by roughly 0.052m (= 0.01 × 0.4 × 13.0m). If EBITDA is 5.0m and EBIT is 3.5m with base interest 0.9m, coverage falls from 3.89x to ~3.39x.
IFRS vs US GAAP
IFRS 16 and ASC 842 bring leases on balance sheet, but analysts may adjust depending on whether they are evaluating enterprise value (often include) or operating leverage (sometimes exclude). Whatever you choose, keep it consistent over time — this calculator keeps a transparent changelog and embeds your scenario in the share URL.
Common mistakes
- Double‑counting the equity component of convertibles as debt.
- Nett ing restricted or trapped cash without policy disclosure.
- Ignoring FX effects when cash/debt are in multiple currencies.
- Comparing Net Debt/EBITDA across companies without matching policies.
Disclaimer: This tool is for education and planning. It is not accounting advice. Please review your company policies and disclosures.
What counts as cash in net debt?
Generally: cash, cash equivalents, and sometimes highly liquid marketable securities. You may include restricted cash only if available for debt service by policy.
Should leases be included in net debt?
Many analysts include them for credit and EV views; others exclude to focus on financial debt. The toggle lets you pick and documents it.
What is “net cash”?
When cash & cash‑like items exceed debt, net debt is negative. That net cash can fund buybacks, dividends, or acquisitions.
Net debt vs enterprise value?
EV = Equity value + Debt + Preferred + Minority interest − Cash (policy‑consistent). Net debt is a component of EV.
| Company | Net Debt | EBITDA | ND/EBITDA |
|---|