what is net debt 
net debt is a liquidity metric that s used to determine how well a company can pay all its debts if they come due immediately net debt shows how much debt a company has on its balance sheet compared to its liquid assets it shows how much cash would remain if all debts were paid off and if a company has sufficient liquidity to meet its debt obligations investopedia mira noriannet debt formula and calculationanalysts and investors will look at the net debt of a company to determine its financial stability it can be found using this formula and calculation net debt std ltd cce where std debt that is due in 12 months or less and can include short term bank loans accounts payable and lease payments ltd long term debt is debt that with a maturity date longer than one year and include bonds lease payments term loans small and notes payable cce cash and liquid instruments that can be easily converted to cash cash equivalents are liquid investments with a maturity of 90 days or less and include certificates of deposit treasury bills and commercial paper begin aligned text net debt text std text ltd text cce textbf where begin aligned text std text debt that is due in 12 months or less text and can include short term bank text loans accounts payable and lease text payments end aligned begin aligned text ltd text long term debt is debt that with a text maturity date longer than one year text and include bonds lease payments text term loans small and notes payable end aligned begin aligned text cce text cash and liquid instruments that can be text easily converted to cash end aligned text cash equivalents are liquid investments with a text maturity of 90 days or less and include text certificates of deposit treasury bills and text commercial paper end aligned net debt std ltd ccewhere std debt that is due in 12 months or less and can include short term bank loans accounts payable and lease payments ltd long term debt is debt that with a maturity date longer than one year and include bonds lease payments term loans small and notes payable cce cash and liquid instruments that can be easily converted to cash cash equivalents are liquid investments with amaturity of 90 days or less and includecertificates of deposit treasury bills andcommercial paper 