Top Financial Analysis Ratios has over 60 ratios divided into five sections:
- Profitability and Return
- Long-term Solvency
- Short-term Solvency
- Efficiency and Turnover Ratios
- Shareholders’ Investment Ratios
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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.