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by gradstudent
1255 days ago
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> In corporate finance net cash or net debt is indeed standard practice (cash on balance sheet less debt on balance sheet). It sort of helps understand how much cash is ‘available’ to give back to investors, or pay down debt, spend on R&D, etc. I'm not a financier, but isn't "available cash" the amount left over after subtracting the amount needed to service (rather than clear) the debt? |
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The cash available on an ongoing basis to be re-invested or returned to investors is what you might call levered free cash flow [0], which I think is what you are referring to.
My comment about "available" cash is more like available for big one-time investments like a big acquisition, a special dividend, or something like that.
[0]: https://www.investopedia.com/ask/answers/111714/whats-differ...