This Net Debt Excel Calculator template is an educational resource that shows you an example on how to calculate the net debt, from the debt accounts and cash and cash equivalents accounts. Net Debt is a metric that measures a company’s ability to pay all its debt if they were all due on the moment of measurement. It compares the company’s liquid assets and its total debt. Net debt is a good metric for analysts to evaluate if a company is under-overleveraged. Some other important liquidity ratios are the quick ratio, debt ratio, current ratio, debt-equity ratio.

The formula for net debt:

Net Debt = Short-term debt +Long Term Debt – Cash and Equivalents