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Net debt and net cash
Debt minus cash: how net debt is defined, how it feeds enterprise value, and a simplified figure for each company.
The short answer
Net debt is a company's debt minus its cash. It shows how much borrowing would be left if the cash on hand were used to pay it down. When cash is larger than debt the figure is negative, and the company is said to have net cash. Using long-term debt and cash and cash equivalents from each 10-K, 9 of the 56 companies here held more cash than long-term debt at their latest year end.
The formula
Net debt = total debt − cash and cash equivalents
There's no single required definition, so companies and analysts draw the lines differently:
- Debt can mean long-term debt only, or also the current portion due within a year, commercial paper and other short-term borrowings. Some analysts add lease liabilities.
- Cash can be just cash and cash equivalents, or also short-term investments and marketable securities, which some companies hold in large amounts.
- Restricted cash, held for a specific purpose, is usually left out.
When a company quotes its own net debt, check the definition it gives. Net debt isn't a line in the financial statements, so a company that presents it generally treats it as a non-GAAP measure and shows how it's built from balance sheet figures; GAAP vs. non-GAAP covers the rules.
How it's used
Net debt sits behind two common figures. Enterprise value is market cap plus net debt, roughly what it would cost to buy the whole business, debts and all. Net debt to EBITDA compares the debt with a year of earnings before interest, taxes, depreciation and amortization, and lenders and credit analysts watch it closely. Interest coverage looks at the same question from the income statement.
Every company
On this simplified measure, AT&T has the most net debt, $116.5B, and Micron the most net cash, $35.6B. Companies with big holdings of marketable securities would show more net cash if those were counted.
Cash and cash equivalents and long-term debt at the latest fiscal year end, from each 10-K, sorted by long-term debt minus cash. A negative figure is net cash. Long-term debt is the figure each company reports as long-term debt, which at some companies includes the part due within a year. Short-term investments, commercial paper and leases are not included, so this is a simplified measure. Banks are left out.
Common questions
What is net debt?
Total debt minus cash and cash equivalents. It shows how much debt would remain if the company used its cash to repay it.
What does negative net debt mean?
That the company holds more cash than debt, often described as a net cash position.
Does net debt include leases?
It depends on who calculates it. Companies' own figures usually don't; many analysts add lease liabilities.
How is net debt used in enterprise value?
Enterprise value is market cap plus net debt, an estimate of the cost of buying the whole business including its borrowings.
Why are banks left out?
Deposits and short-term funding are part of a bank's business, so debt and cash don't mean the same thing as at other companies.
See it side by side
The same figures for two companies at once, each linked to its 10-K:
Disclosures
- Editor holdings
- The editor holds shares of Tesla (TSLA) and SpaceX in a long-term retirement account. The editor holds no position in any other company named on this page. As of Nov 11, 2026.
- Compensation
- Nobody paid for this page. No affiliate links on this page.
- Sources
- Each company's own SEC filings, linked next to each number.
- Last updated
- Nov 9, 2026
General education, the same for every reader. Not a recommendation to buy, sell or hold any security, and it doesn't consider your situation.
More in Learn and Tools · Methodology & Disclosures explains where every number comes from.