Financial debt in the financial statements
Financial debt is a balance-sheet line item: a balance at a date, with a credit balance in the ledger. Metrics read it as a positive number, although the ledger stores credits as negative amounts.
Financial debt in Business Central
How the accounts are selected
- Plus 5 accounts assigned directly: 21100 Bonds and Debenture Loans, 21200 Convertibles Loans, 21400 Bank overdraft Facilities, 22500 Bank overdraft short-term, 25400 Current Loans
5 posting accounts in total.
Posting accounts
- 20000 Liabilities
- 21000 Long-term Liabilities
- 22000 Current Liabilities
- 25000 Other Current Liabilities
Metrics using financial debt
- Debt to EBIT: Financial debt ÷ EBIT
- Free Cash Flow to Equity: Net profit − change in non-current assets − change in Trade Working Capital + change in financial debt