• Business
  • Crypto
  • Investing
  • Lifestyle
  • Money
  • Glossary
    • A
    • B
    • C
    • D
    • E
Search
Sign in
Welcome! Log into your account
Forgot your password? Get help
Password recovery
Recover your password
A password will be e-mailed to you.
Finance Reference
Quotes by TradingView
  • Business
    • Why PPC Advertising is Good for Your Business
      Six Signs You Need to Hire Professionals to Do Your Taxes This Year
      How to Establish a New Small Business from Scratch
      The Impact of Artificial Intelligence on Social Media Marketing
      What Is The Importance Of Web Design For Your Business?
  • Crypto
    • Crypto Market Indexes: Your Ticket to Making Money Through Crypto
      10 Benefits Of Using Crypto Debit Cards
      Everything You Need to Know About Metamask
      Anti-Money Laundering Best Practices for Crypto Firms
      You Should Invest in Bitcoin and Here’s Why
  • Investing
    • What Makes a Successful Real Estate Transaction?
      Investing vs. Online Gambling: What’s The Difference?
      Comparing Stock Market Performance vs. Real Estate Investments Through History
      How to Fast Track a Retirement Plan in Your Middle-Age
      How Much of Your IRA Should Be in Precious Metals
  • Lifestyle
    • The Top Mistakes to Avoid When Hiring a Car Accident Lawyer
      Top Tips for Snagging The Best Online Bargains
      How to Effectively Budget for a Home Renovation?
      How to Choose an Affordable Health Care Plan
      Interesting Facts about Bet9ja
  • Money
    • Ten Ways to Make the Most of Your Cash Back Rewards
      Simple Ways You Can Reduce the Cost of Your Banks Utilities
      10 Best Passive Income Ideas to Build Your Wealth
      Efficient Funding Opportunities for New and Old Social Businesses
      10 of the Best Funding Sources For Medical Offices In 2023
  • Glossary
    • Adversary and Inquisitorial Systems
      Comparing Adversary and Inquisitorial Systems
      Overhead Ratio
      What Is an Overhead Ratio?
      Non-Executive Director
      Non-Executive Director: Roles and Responsibilities
      Mothballing
      What is Mothballing & When Should You Do It?
      Night Depository
      What is a Night Depository?
      AllABCDE
  • Glossary
  • L

Lease Payments

By
rjonesx
-

What is ‘Lease Payments’

A line item under long-term debt on a balance sheet that indicates the value of future lease payments due.

Lease payments vary widely between companies, and so it is not necessarily good to compare two companies’ lease-payment figures, even if they are in the same industry. It is more valuable to compare long-term debt as a whole.

Explaining ‘Lease Payments’

Lease payments can be made by individuals as well as companies. Leases are most commonly used by individuals to finance cars, but can also be used to obtain computers and land, among others things.

A company’s lease payments are used in the calculation of the fixed-charge coverage ratio. This ratio helps investors see if a company can cover its fixed expenses, such as leases and interest.

Further Reading

  • Bankruptcy costs and the financial leasing decision – www.jstor.org [PDF]
  • Valuation of financial lease contracts – onlinelibrary.wiley.com [PDF]
  • To lease or not to lease from storage clouds – ieeexplore.ieee.org [PDF]
  • Valuation of asset leasing contracts – www.sciencedirect.com [PDF]
  • The determinants of yields on financial leasing contracts – www.sciencedirect.com [PDF]
  • CEO ownership, leasing, and debt financing – www.jstor.org [PDF]
  • Valuing lease contracts a real-options approach – www.sciencedirect.com [PDF]
  • Operating leases: Impact of constructive capitalization – search.proquest.com [PDF]
  • Are debt and leases substitutes? – www.jstor.org [PDF]
  • Realized returns and the default and prepayment experience of financial leasing contracts – www.jstor.org [PDF]
Previous articleLaw Of Supply
Next articleLeading Lipstick Indicator
rjonesx

RELATED ARTICLESMORE FROM AUTHOR

Adversary and Inquisitorial Systems

Comparing Adversary and Inquisitorial Systems

Overhead Ratio

What Is an Overhead Ratio?

Non-Executive Director

Non-Executive Director: Roles and Responsibilities

EDITOR PICKS

FAAMG Stocks

Joint Supply

Quarter (Q1, Q2, Q3, Q4)

Earnings Before Tax (EBT Formula)

SPX vs SPY: Which is Better for Trading Options on the S&P 500?

Should I invest in additional life coverage?

Latest

The Top Mistakes to Avoid When Hiring a Car Accident Lawyer

Ten Ways to Make the Most of Your Cash Back Rewards

Top Tips for Snagging The Best Online Bargains

Why PPC Advertising is Good for Your Business

How to Effectively Budget for a Home Renovation?

Simple Ways You Can Reduce the Cost of Your Banks Utilities

  • A
  • B
  • C
  • D
  • E
  • F
  • G
  • H
  • I
  • J
  • K
  • L
  • M
  • N
  • O
  • P
  • Q
  • R
  • S
  • T
  • U
  • V
  • W
  • X
  • Y
  • Z
  • About
  • Accessibility
  • Privacy
  • Sitemap