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  Stock Market Basics 65: Net Debt Explained — How to Understand a Company’s Real Debt Burden 3-Line Summary Net debt shows a company’s real debt burden after subtracting cash and cash equivalents from total borrowings. A company with large debt may still be financially stable if it also holds enough cash. Investors should read net debt together with cash flow, interest coverage, debt maturity, and industry characteristics. Recommended Keywords net debt, net debt explained, net debt formula, total debt, cash and cash equivalents, financial statement analysis, company debt analysis, balance sheet basics, investing basics, stock market for beginners, interest coverage ratio, operating cash flow, financial health Table of Contents What Is Net Debt? Net Debt Formula Why Looking Only at Debt Can Be Misleading What Positive Net Debt Means What Negative Net Debt Means Is a Net Cash Company Always Good? Why Net Debt Increases Why Net Debt Decreases Net Debt vs Debt-to-Equity Ratio Why Net...

  Stock Market Basics 64: Cash Ratio Explained — How to Check a Company’s Short-Term Financial Safety 3-Line Summary The cash ratio shows how much of a company’s short-term liabilities can be covered by cash and cash equivalents. It is more conservative than the current ratio and the quick ratio because it focuses only on the most liquid assets. A high cash ratio can signal safety, but investors should also check cash flow, debt structure, business model, and industry characteristics before making any judgment. Recommended Keywords cash ratio, cash ratio explained, cash ratio formula, cash and cash equivalents, current liabilities, financial statement analysis, liquidity ratio, current ratio, quick ratio, short-term solvency, company debt analysis, investing basics, stock market for beginners, financial health of a company Table of Contents What Is the Cash Ratio? Cash Ratio Formula Why the Cash Ratio Matters Cash Ratio vs Current Ratio vs Quick Ratio What a High Cash Ratio Means ...