Eli5 what is net debt?
In: 3
Total Debt – Total Cash & Cash Equivalents. Basically, how much debt would you have left if you use all of your cash (and everything that can easily be turned into cash) to pay off your debts.
So, for example, you have $10k in credit card debt, $4k in cash and $2k in stocks. Your net debt is $4k – the $10k in debt minus the $6k in cash ($4k in hard cash plus $2k in stocks that can quickly be turned into cash).
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