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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 ...


Equity is for the bulls; debt is for the bears. It depends on what kind of capital is available for financing and what the group needing capital can offer in terms of security. Early stage startups have nothing to offer but future returns (especially if they are cash-flow negative). A high risk investment with little collateral and a high burn rate may not ...

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