§ Balance sheet
Net cash
Glossary version 2026-07-12.v1 · reviewed July 12, 2026
Cash and liquid investments exceeding total debt. A net-cash company has more qualifying liquid resources than borrowings, although some cash may still be required to operate the business.
Formula
Net cash = Cash and liquid investments − Total debtNet cash is the amount by which qualifying cash and liquid investments exceed interest-bearing debt. In an enterprise-to-equity valuation bridge, net cash increases equity value, while net debt reduces it. Analysts should exclude restricted cash and preserve an operating-cash buffer instead of assuming every dollar on the balance sheet can be distributed.