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