Finance & Accounting / Treasury
Net Debt & Leverage Ratio Net Debt / EBITDA
Net debt is what a company owes after using its cash to pay it down; the leverage ratio scales that against earnings to gauge how heavy the debt load really is.
The fork, why two teams get different numbers
"Debt" is not a settled set.
In the Metric Library
- The full fork, both definitions worked all the way through
- The trap that makes the number lie, on a real export
- Every formula variant, spelled out
- The reconciliation anchor, what to tie it to and when to refuse
Reference: FASB ASC 842 (Leases) · FASB ASC 405 (Liabilities) · S&P Global / Moody's adjusted-debt methodologies · credit agreement conventions