Net borrowing

Net borrowing = new debt issues - debt repayment. If positive, more cash is avail to equity holders so dividend may be paid off or stocks repurchased. A company may roll over debt forever under some circumstances.
 
So if given 2014 and 2013 balance sheets you would find net borrowing by looking at the movement during the year? Are we talking about LTD only or total debt?
 
Better estimation you will find looking at CF statement rather than at BS. If CFF is positive and high, net borrowing within period was positive. As I said, a company may roll over debt continuously so debt term structure doesn’t matter in this case.
 
OK fair enough. Still the exam may not provide CF statements so NI approach will be used.
 
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