Net debt to capital ratio is a percentage that shows how much a company uses debt to fund its operations, after subtracting any cash or cash-like assets that could be used to pay off the debt. It helps to measure how easily a company can get external financing and how risky its business is. The formula for net debt to capital ratio is:
Net debt to capital ratio = (Net debt / (Total capital - Cash & Marketable Securities)) * 100
Where:
- Net debt is R0015,
net_debt
- Total capital is BS075,
bs_tot_cap
- Cash & Cash Equivalents is BS002,
bs_cash_near_cash_item