Net debt
AccountingDefinition
Total debt minus cash and short-term investments. The "net" amount the company owes after accounting for liquidity. Used in EV calculations.
Apple has roughly zero net debt despite ~$100B of gross debt — because it holds ~$100B in cash and securities. AT&T is the opposite: heavy net debt from cable + media acquisitions.
Apple has roughly zero net debt despite ~$100B of gross debt — because it holds ~$100B in cash and securities. AT&T is the opposite: heavy net debt from cable + media acquisitions.
Formula
Net debt = Total debt − Cash & equivalents