Total debt question

Q & ATotal debt question
Wei Fong Liew asked 4 years ago

Hi Peter and KC, currently I am using shareinvestor.com to collect all data of companies. I have come across with total debts now which I am confused with all the liabilites terms. How do we take the correct figure from all the liabilities figures in order to calculate the correct net cash?
 
Thanks in advance.

1 Answers
Peter Lim Staff answered 4 years ago

Debts are part of liabilities, but not all liabilities are debts.
For example, creditors ( who supply goods to a company) might give the company goods and requires payment 60 days later. The amount owing is classified as liabilities, but they’re non interest bearing (meaning the company does not pay interest on the amount owing). Thus, although they are liabilities, but they’re not Debts.