Posts Tagged ‘Ratios’

I am a finance student doing a project with a company’s financial statements. I want to calculate Debt over assets.

My problem is that the company has listed its stock options that the executives may exercise in the future as debts in the annual statement. I know this is usually not on the balance sheet, but should I add these options in when calcuation the above ratio?

I would like to know what the rule is in both accounting and finance regarding if stock options are debt.

Part four of a multipart example calculating some basic financial ratios. Part four focuses on the debt management ratios — total debt to total assets, times interest earned, and cash coverage ratio.