Net Debt
Short definition
Net debt is gross financial debt minus cash and cash equivalents (usually excess/unrestricted cash). It is the bridge from enterprise value to equity value and the numerator of leverage ratios.
Detailed explanation
What sits in gross — leases, factoring, derivatives, principal swaps — is pack-specific. On the cash side, trapped cash and collateral accounts should not be deducted; otherwise net debt is optimistic.
Negative net debt (net cash) is not spare capacity; trapped cash and the minimum-cash floor can make the negative number cosmetic. In EV = equity + net debt, the cash definition moves EV.
Why it matters for the CFO
It is the numerator of net debt/EBITDA covenants. A wrong cash definition breaks both leverage and the trading multiple.
How it is calculated
Net borç = Brüt finansal borç − Nakit ve nakit benzerleri (fazla / kısıtsız nakit tanımıyla)
Variables in the formula
- Net debt: Gross financial debt − cash
How to read it
A fall in net debt is principal repayment or a cash increase; the latter can be a new draw. Tenor is invisible in net debt.
Numerical example
Gross financial debt 500 mn TL, unrestricted cash 80 mn TL → net debt = 420 mn TL.
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Definitions are educational. They are not investment, credit or tax advice.