Table:
| At 31 March | 2019 £m | 2018 £m | 2017 £m |
| --- | --- | --- | --- |
| Loans and other borrowings | 16,876 | 14,275 | 12,713 |
| Less: |  |  |  |
| Cash and cash equivalents | (1,666) | (528) | (528) |
| Current asset investments | (3,214) | (3,022) | (1,520) |
|  | 11,996 | 10,725 | 10,665 |
| Adjustments: |  |  |  |
| To retranslate debt balances at swap rates where hedged by currency swaps | (701) | (874) | (1,419) |
| To remove accrued interest applied to reflect the effective interest method and fair value adjustments | (260) | (224) | (314) |
| Net debt | 11,035 | 9,627 | 8,932 |
Paragraphs:
25. Loans and other borrowings continued
Net Debt
Net debt consists of loans and other borrowings (both current and non-current), less current asset investments and cash and cash equivalents. Loans and other borrowings are measured at the net proceeds raised, adjusted to amortise any discount over the term of the debt. For the purpose of this measure, current asset investments and cash and cash equivalents are measured at the lower of cost and net realisable value. Currency denominated balances within net debt are translated to sterling at swapped rates where hedged.
Net debt is considered to be an alternative performance measure as it is not defined in IFRS. The most directly comparable IFRS measure is the aggregate of loans and other borrowings (current and non-current), current asset investments and cash and cash equivalents. A reconciliation from the most directly comparable IFRS measure to net debt is given below.
A reconciliation from the most directly comparable IFRS measure to net debt is given below.
Question:
How is net debt calculated?
Answer: loans and other borrowings (both current and non-current), less current asset investments and cash and cash equivalents