Quantitative Finance Stack Exchange is a question and answer site for finance professionals and academics. Join them; it only takes a minute:

Sign up
Here's how it works:
  1. Anybody can ask a question
  2. Anybody can answer
  3. The best answers are voted up and rise to the top

What is the difference between Total Long Term Debt and Net Total Long Term Debt?

Below you can see a picture revealing that they are not equal.

enter image description here

share|improve this question
Who is the data provider? Doesn't their metadata indicate the differences between the series? – Joshua Ulrich Jul 20 '14 at 13:29
up vote 1 down vote accepted

Net Debt = Total Debt - Cash

You can also see from the graph, that Net Debt is always below Total Debt.

Cash (and liquid marketable securities) is deducted from Debt, because it could be in theory directly used to repay the debt, hence only "Net Debt" is important; think a company with 1mio Debt and 1mio Cash, one would not say it was in debt because it can essentially repay any time.

share|improve this answer
Thanks @emcor i absolutely suspected it but i wanted someone to confirm it to be 100% sure. Let's hope this serves as a resource to others. – ExoticBirdsMerchant Jul 15 '14 at 10:10

Your Answer


By posting your answer, you agree to the privacy policy and terms of service.

Not the answer you're looking for? Browse other questions tagged or ask your own question.