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Extra Space Storage Short Term and Long Term Liabilities

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Please list the short term liabilities (or debt) and long term liabilities for Extra Space Storage (NYSE: EXR). Please also compute the debt ratio of Extra Space Storage and the debt to equity ratio. Also, show these two ratios for short-term liabilities only and for long-term liabilities only and explain.

Can you please provide your recommendations as to whether or not you consider these ratios to be too small or too large. Do you think the company should increase its debt or take steps to pay off the calculated debt?

Please also compute the debt to equity ratios of Public Storage (NYSE: PSA) and Sovran Self Storage Inc. (NYSE: SSS) so that I can compare.

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EXR (The information was obtained at http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=9124262-217859-222739&type=sect&dcn=0001047469-13-001942)

Total Liabilities = $1,678,146
Long Term Liabilities (Notes Payable, Premium on notes payable and Notes payable to trusts) = $1,369,690 + 3,319 + 119,590 = $1,492,599

Short Term Liabilities (Accounts payable and accrued expenses and Other liabilities) = $52,299 + $48,248 = $100,547

Market Value of Equity EXR = Current Stock Price x Number of Outstanding Shares = $39.09 x 110,737,205 = $4,328,717,343.

Debt ratio EXR = Total Liabilities / Total Assets = $1,678,146 / $3,223,477 = 0.52

EXR has a debt ratio of 0.52, which is less than 1. A debt ...

Solution Summary

The solution examines the extra space storage for short and long term liabilities.

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Long Term Debt, Contingencies and Leases

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Discuss trends, financial position, ratios, etc. For example, it may be helpful to discuss inventory turnover when assessing inventory valuation risk.
Obtain the 2010 financial statements and notes (annual report or 10-K) for Monro Muffler Brake, Inc. (MNRO). Use Tenneco for a benchmark and comparison purposes. This means ratios must be completed for both companies (but a description of the company only needs to be done for Monro).

To assess a company's financial statements, think specifically about: (1) the types of underlying transactions and events that affect the company, (2) how well the financial accounting rules (i.e., GAAP) reflect those transactions and events, (3) the aggressiveness or conservatism of management's accounting choices, and (4) how the annual report helps you assess the company's risks, financial position, and profitability.

For each item below, provide an easy to read and understandable presentation of the facts for your company. There should be a brief description of the items (Monro) and computational analysis (ratios).

LONG-TERM DEBT, CONTINGENCIES AND LEASES:
? Description of long-term debt
? Major leasing activities (if any) and types of leases involved
? Business reasons for, and importance of leasing activities
? Other significant liabilities disclosed for contingencies, warranties or commitments and their importance

Things to consider: Description of debts, Debt Percentage, Operating leases vs Capital leases, Present Value of bonds and leases, etc.

Link for Munro 10K:
http://quote.morningstar.com/stock-filing/Annual-Report/2011/3/26/t.aspx?t=XNAS:MNRO&ft=10-K&d=494a5ad12f3cde1f4e477c4bd3c24f2b

Link for Tenneco 10K:
http://www.tenneco.com/media/annualreport/pdfs/Tenneco-2010-10-K.pdf.

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