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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

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    $\begingroup$ Who is the data provider? Doesn't their metadata indicate the differences between the series? $\endgroup$ Jul 20, 2014 at 13:29
  • $\begingroup$ @joshuaulrich the data provider is YCharts. $\endgroup$ Jan 18, 2021 at 19:59

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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 can essentially repay any time.

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  • $\begingroup$ 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. $\endgroup$ Jul 15, 2014 at 10:10

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