0
Answered

dividend safety tab

Xapity 11 months ago in Website updated by SA Admin Amitai Richman 11 months ago 3

Under the Dividend Safety tab, how are Net Long Term Debt / Total Assets and Net Long Term Debt / EBITDA calculated. I'm trying to understand why some companies can have negative values.

Under review

Thanks for the question. Which companies are you looking at?

Hi, thanks for responding; take NKE for example:

Dividend Safety Metrics

Payout Ratio                                         37.20%

Cash Dividend Payout Ratio (TTM)      27.23%

Net Long Term Debt / Total Assets        -2.54%

Net Long Term Debt / EBITDA             -10.49%


What causes the two values to be negative. I guess I'm wondering how Net Long Term Debt is calculated, since it seems to affect both.

Answered

In general, companies with a low or negative net debt should be less risky than companies with a high ratio. A negative value indicates the company has more cash than debt. You might want to read this:
https://www.investopedia.com/terms/n/netdebt.asp