Net Debt Per Capital

Net Debt Per Capital

The debt a government holds divided by the number of citizens under that government's jurisdiction. The government involved may be a municipality, a national government, or anything in between. It is calculated by taking the total debt, subtracting the government's cash and cash equivalents, and dividing the quantity by the number of citizens. Net debt per capita is important in determining a government's creditworthiness and may help a potential lender or bondholder calculate the likelihood of default. See also: National debt.