What is net debt?
Net debt is what a company owes in borrowings, minus its cash and short-term investments. When cash is larger, that is net cash.
Net debt is not a line in the GAAP financial statements (GAAP is the US accounting rules). Companies that show their own version often label it non-GAAP; Netflix lists net debt among its non-GAAP measures.[S5]
How is net debt worked out?
Net debt = total debt − cash and cash equivalents − short-term investments.
Debt means borrowings: bank loans, commercial paper (short-term IOUs) and bonds.[S2]
Most Cityfort stock pages' notes say what the debt figure counts. Most leave operating lease liabilities out; some add finance leases or subtract cash only.
Netflix's stock page shows Net debt $6.9B (Sep 30, 2026). Netflix's own measure added back debt issuance costs and a hedging adjustment.[S5]
Costco's stock page shows Net cash $15.1B (Aug 30, 2026).
Where do you find it in a 10-K or 10-Q?
The inputs sit on the balance sheet: Item 8 of a 10-K[S3] or Part I, Item 1 of a 10-Q.[S4]
SEC rules ask for each issue or type of long-term debt, with its interest rate and maturity, in the balance sheet or a note.[S2] The MD&A (Item 7 of a 10-K) covers liquidity and capital resources.[S3]
When a company presents net debt as a non-GAAP measure, as Netflix does, it must show the most directly comparable GAAP figure and a reconciliation.[S1] See non-GAAP measures.
What does net debt leave out?
- Leases. Lease payments owed are a liability on the balance sheet for most leases, operating ones too.[S6] Many net debt figures leave them out.
- Other bills. Money owed to suppliers, staff and tax authorities is a liability, not a borrowing.[S8]
- Timing. A balance sheet is a snapshot of one date.[S8] Net debt does not show when each loan falls due; the debt note does.[S2]