Dados B3 › Glossary

Glossary

Net debt

What the company owes in loans, after subtracting the money it has in cash and investments.

What it is

What the company owes in loans, after subtracting the money it has in cash and investments. Shown on the stocks pages.

How Dados B3 calculates it

gross debt (loans, financing and debentures, short and long term, with leases) − cash − financial investments.

Example

Illustrative example, with made-up numbers to keep the arithmetic easy: Gross debt of R$ 700 million, cash of R$ 100 million and investments of R$ 200 million: net debt = R$ 400 million. If the result is negative the company has more cash than debt.

What to watch for when reading it

• It is a snapshot of the balance sheet at period end; cash may have changed since.
• Banks and insurers do not have this indicator in the usual sense.

See also

• Net debt / EBITDA
• Net debt / equity and gross debt / equity
• Enterprise value (EV)

Methodology · All indicators

Educational content to understand what each number means. It is not a recommendation to buy or sell.