Net Debt Repayment
Net debt repayment refers to the total amount of debt that a company has repaid during a specific period, after accounting for any new debt issued. It is calculated by subtracting new debt issuance from debt repayments. A positive net debt repayment indicates that the company is reducing its overall debt burden, while a negative figure suggests that the company is taking on more debt than it is repaying.
Example
A company repays $10 million in loans but issues $4 million in new debt during the same period, resulting in a net debt repayment of $6 million.
Key points
• Refers to the total amount of debt repaid, minus any new debt issued.
• A positive net debt repayment means a company is reducing its overall debt.
• Important for assessing a company’s financial health and leverage.
Quick Answers to Curious Questions
Get the latest insights & exclusive offers delivered straight to your inbox.
Start Your Journey
Put your knowledge into action by opening an XS trading account today
