What do debt and net debt mean?
Debt is the money a company has borrowed and must repay with interest: bank loans, bonds and debentures. Net debt is that debt minus the cash and liquid investments it holds.
If cash is larger than debt, the company has net cash. Cityfort then shows "net cash" instead of a negative number.
Where do you find debt in a filing?
The balance sheet splits borrowings into long-term and short-term. Any loan due within twelve months counts as short-term.[S1]
Companies also explain how their borrowings changed during the year, both through cash repaid or raised and through other changes.[S2]
What do the two ratios below mean?
Debt-to-equity divides debt by shareholders' money in the business. Interest coverage divides profit before interest by the interest bill; companies differ on which profit line they use.
Is debt good or bad?
Neither by itself. A power utility may borrow to build lines that earn steady fees for decades. A software firm may need almost no loans at all.
The numbers show how a business is funded. Comparing them across industries is context, not a verdict.