easy · Financial Accounting financial-statement-analysis-ratios

How is 'Net Debt' typically calculated for use in the Net Debt-to-EBITDA ratio?

  1. Long-term debt minus accounts receivable balances.
  2. Total interest-bearing debt minus cash and cash equivalents.
  3. Current liabilities minus total current assets on the books.
  4. Total liabilities minus the company's total reported assets on hand.

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