Cash and debt
Debt
Money the company has borrowed and must pay back, such as bank loans and bonds.
Why does it matter?
Borrowed money has to be repaid, usually with interest, whatever happens to the business. That creates commitments the company must meet.
How do I read it?
Many companies borrow on purpose, for example to build factories or buy other businesses. Compare debt with cash, profit and free cash flow, and look at how it changes over the years.
How StockLab calculates it
Short- and long-term borrowings from the latest balance sheet (leases not included).
Example
A company that borrowed $2 billion from banks and $8 billion through bonds has $10 billion of debt, which it must repay with interest.
On StockLab
It is part of the Cash vs. Debt card on every company page.