Financial health
Net debt
What it is
Total debt minus cash on hand. In other words: what would still be owed if the company repaid today using its available cash.
How to read it
Negative net debt means more cash than debt — a position of strength. It's often compared to EBITDA to judge whether the debt load is sustainable.
What it does not tell you
It assumes all cash is available, which is rarely true: part funds day-to-day operations, part may be trapped overseas for tax reasons.
Other measures — Financial health
Educational content. Polaris is not a registered investment adviser and makes no recommendation.