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QuestionsCategory: Financials QuadrantCalculation of Total Debt for Debt to CF
Alvin Tan asked 1 year ago
Hi Victor, I notice you do not include "other non-current liabilities" in the calculation of Total Debt. I notice this amount is quite significant in Apple's case. Why do you choose to discount this figure? Thanks.
1 Answers
Victor Chng Staff answered 1 year ago
Hi Alvin, 

The other non-current liabilities are tax payable and lease liabilities; I don't view them as debt. 

I view debt as interest-bearing liabilities which are usually your loan, notes and etc. This type of debt can bankrupt the company.