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Financial Terms and Glossary

Net debt repayment

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

It is the total amount of debt a company repays, minus any new debt issued during the same period.

It indicates whether a company is reducing its debt burden, improving its financial stability.

It suggests that the company is issuing more debt than it is repaying, potentially increasing its leverage.

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