Interest expense without debt

Q & AInterest expense without debt
Yee Voon asked 5 years ago

Hi Peter and KC,

I was doing an analysis on a company (BAUTO), and realized that from 2014 to 2019, there is interest expense but no total debts. How is this possible?

Thanks in advance!

1 Answers
Peter Lim Staff answered 5 years ago

Hi Voon,

You can download the company’s annual reports, and then see the income statement if there is “Interest Expense”, and also in the balance sheet if there is any Loans. 
Then check the notes on “Interest Expense” for the explanations.
One possibility is Lease contracts.