What does NIBD mean in ACCOUNTING
Net Interest-Bearing Debt (NIBD) is the total amount of debt that a company has minus any cash deposits. It is important when considering a company's credit rating and overall financial health.
NIBD meaning in Accounting in Business
NIBD mostly used in an acronym Accounting in Category Business that means Net Interest-Bearing Debt
Shorthand: NIBD,
Full Form: Net Interest-Bearing Debt
For more information of "Net Interest-Bearing Debt", see the section below.
» Business » Accounting
Essential Questions and Answers on Net Interest-Bearing Debt in "BUSINESS»ACCOUNTING"
What is Net Interest Bearing Debt?
Net Interest Bearing Debt is the total amount of debt that a company has minus any cash deposits.
How do you calculate NIBD?
NIBD is calculated by taking the sum of all the company's interest bearing debt, such as loans and bonds, and subtracting out any cash deposits.
How does NIBD affect a company's credit rating?
A higher NIBD can make it harder for a company to obtain financing, as lenders are wary of lending to companies with high levels of debt. Thus, a higher NIBD may result in a lower credit rating for the company.
Are there any other factors considered in assessing a company's financial health in addition to their NIBD?
Yes, there are other factors considered when assessing a company's financial health such as their liquidity ratio, current ratio, and leverage ratio. These measures help provide additional insight into the actual risk associated with investing in the firm.
Is it possible for companies to have zero net interest-bearing debt?
Yes, this is possible if a company does not have any loans or bonds outstanding but does have cash on hand or invested money market accounts or similar investments.
Final Words:
In conclusion, Net Interest-Bearing Debt (NIBD) is an important consideration when evaluating the financial health of a company. By understanding how to calculate it and how it affects credit ratings, investors can better understand the potential risks associated with investing in certain companies.
NIBD also stands for: |
|
| All stands for NIBD |