Tag: lease

Sale and Leaseback

See Also: Lessor vs Lessee Lease Agreements Capital Lease Agreement Operating Lease Working Capital Sale and Leaseback Definition The sale and leaseback definition is a transaction in which a company sells its property to another company and then leases that property. The company that sells the asset becomes the lessee, and the company that purchases

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Removal Costs

See Also: Average Cost Agency Costs Fixed Costs Variable Cost Loan Term Removal Costs Definition Removal costs, defined as the costs of removing any physical material from the original location it was placed in, is an often forgotten cost. Despite this, it can have a huge effect on the finances of a company. Major manufacturing

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Lease Term

See Also: Capital Lease Agreement Lease Agreements Operating Lease Sale-and-Leaseback Why Is Intellectual Property Risk Everybody’s Problem? Lease Term Definition Defined as the period of time in which a contracted lease is in place, lease term establishes the time period to both the lessee and lessor. Lease terms generally come on 3 forms: fixed, periodic,

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Fixed Charge Coverage Ratio Analysis

See Also: Fixed Charge Coverage Ratio Definition Operating Income (EBIT) Debt Service Coverage Ratio Fixed Costs Times Interest Earned Ratio Free Cash Flow Financial Ratios Fixed Charge Coverage Ratio Analysis Formula See the fixed charge coverage ratio analysis formula below: Times Interest Earned Ratio = (EBIT + fixed charge) ÷ (total interest + fixed charge)

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FASB Lease Accounting Changes

See Also: Capital Lease Agreement Lease Agreements FASB Lease Accounting Changes Explanation A change in accounting rules implemented by The Financial Accounting Standards Board (FASB) has led to FASB lease accounting changes. Furthermore, the proposed lease accounting changes will bring a large amount of debt onto the balance sheets of companies that have large operating

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