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Quick Definition

Contain the leased property of a company, totaling the sum of all lease payments.

Explanation of Lease Payments

Listed on the Balance Sheet, this value is a line item under Long-Term Debt, as generally leases extend beyond one year. This figure will vary widely between companies, and whether to buy assets versus leasing them is always a opinionated topic of discussion.

Importance of Lease Payments

This figure alone is not particularly important, and is used in the calculation of the performance ratio: Fixed Charge Coverage.