The debt-to-equity ratio is calculated as total debt (i.e., total liabilities) divided by total equity. The exercise of the options will increase total equity and this will decrease the debt-to-equity ratio. A lower debt-to-equity ratio is an improvement.
When a stock option is exercised there are more shares outstanding. This will decrease the basic earnings per share because the same amount of income is being divided between a larger number of shares.
Total asset turnover is calculated as sales divided by total assets. When the options are exercised the company will receive some amount of cash. This will increase total assets and decrease the total asset turnover.
When a stock option is exercised there are more shares outstanding. This will decrease the ownership interest of existing shareholders because the number of shares that they own is now a smaller percentage of the larger total number of shares outstanding.
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