Fundamental Glossary / Debt & Financial Stability
Gross Debt
All interest-bearing borrowings, before subtracting cash.
Formula
Short-term borrowings + current maturities of long-term debt + long-term borrowings + lease liabilities, when leases are treated as debt.
What it means
Gross debt is the amount that has to be refinanced, whatever the cash balance. A company with 100 of debt and 100 of cash still has a maturity to meet if the cash is not in the right place at the right time.
It is the stricter figure for liquidity planning. Net debt is the stricter figure for valuation only after you trust the cash.
How to read it
Watch the maturity of gross debt, not only the total. A modest gross debt due next quarter is a bigger event than a larger gross debt due in eight years.
What to watch
Acceptances, supplier finance, and preferred stock can be debt in substance. If they are left out, gross debt is understated.
This note explains the term. It is not a research recommendation, a target price, or a comment on any security. Ratios and regulatory thresholds change; use the latest filing or circular for a live figure.