Remove Banking Remove Book Value Remove Net Debt
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Data Update 8 for 2025: Debt, Taxes and Default - An Unholy Trifecta!

Musings on Markets

We can start with dollar value debt, with two broad measures gross debt , representing all interest-bearing debt and lease debt, and net debt, which nets cash and marketable securities from gross debt. Data Update 4 for 2025: Interest Rates, Inflation and Central Banks!

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To Bitcoin or not to Bitcoin? A Corporate Cash Question!

Musings on Markets

Net Debt to Equity = (Debt-Cash)/ Equity Debt to Capital = (Debt-Cash)/ (Debt + Equity) All of these ratios can be computed using accounting book value numbers for debt and equity or with market value numbers for both.

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Data Update 6 for 2023: A Wake up call for the Indebted?

Musings on Markets

Note that this framework applies for all businesses, from the smallest, privately owned businesses, where debt takes the form of bank loans and even credit card borrowing and equity is owner savings, the largest publicly traded companies, where debt can be in the form of corporate bonds and equity is shares held by public market investors.