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QuestionsCategory: Financials QuadrantCalculation of Debt
Michael Lim asked 5 years ago

HI,
I am trying to compute the Debt component for D/E ratio. In annual Report, we consider the following as Debt: Bank Loans, Bonds and Notes. 
I come across the following Finance lease payables  and Derivative financial instruments. Should they be considered part of Debt calculation? I am asking because some companies may have fanciful/different terms for Debts.
Link Here: Page 3, under current liability 
For Now i consider the Debt to be: Bank borrowings(Current Liability) : 89,491 +  Bank borrowings (Non-current Liability) : 1,559 = 91050 
Total Equities (Page 3): 71,022 (Exclude non-controlling interest)

1 Answers
Victor Chng answered 5 years ago

Hi Michael, 
 
The figure you obtained are correct but if you want to be super conservative you can include the derivative financial instrument.