Net Borrowing

CFA Level II
#1

Can someone clarify the Net Borrowing Formula? As far as payables and LTD…

#2

I don’t think net borrowing includes payables + Debt issuance - Debt repayments unless if you are talking about notes payable, which I would add if they increased year over year and subtract (as repayment) if decreased

#3

Yeah Notes Payables. So its change in LTD + change in notes payable???

#4

yes

#5

Its includes Notes payable as well as the current portion of LTD

#6

PC79 Wrote: ------------------------------------------------------- > Yeah Notes Payables. > > So its change in LTD + change in notes payable??? Change is all debt actually ST & LT Net borrowing = amount borrowed from bondholders in a given period.