Calculation of Total Debt for Debt to CF
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
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.
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