Net Debt Question

Hey guys quick question that I am stuck on. I came across a couple companies that have negative net debt... How can a company have negative net debt? Is this because it is net of cash, so basically the excess cash balance is being subtracted from debt resulting in it being negative because it is higher than the amount of outstanding debt? Been searching around for an answer on this one and haven't found much. Thanks

5 Comments
 

Cash > Debt => Negative Net Debt

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