Lease Payments

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Dictionary Says

Definition of '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.   

Investopedia Says

Investopedia explains '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.
Search results for

'Lease Payments'

  • Uncovering Hidden Debt

    http://www.investopedia.com/articles/stocks/04/102004.asp
    ... on the airline's balance sheet. The lease payments appear as operating
    expenses instead. Operating leases, which are popular in ...

  • Why might a bond agreement limit the amount of assets that the ...

    http://www.investopedia.com/ask/answers/09/bond-covenant-lease.asp
    ... in the lease; the lease life is more than 75% of the economic life of the asset;
    or the present value of the lease payments are more than 90% of its cost. ...

  • CFA Question of the Week 06/20/2006 | Investopedia

    http://www.investopedia.com/professionals/questionoftheweek/cfa/062006.asp
    ... Starting date of lease: January 1st, 2002. Annual year-end lease payments: $32,000. ...
    Year. Lease Payments. Interest Expense. BV of Lease. 0. $150,909. ...

  • New Wheels: Lease Or Buy?

    http://www.investopedia.com/articles/pf/05/042105.asp
    ... hand the keys over to the car dealership and look for another vehicle, or finance
    the remaining value of the vehicle and go from making lease payments to loan ...

  • CFA Level 1 Study Guide - Liabilities - Accounting For Leases ...

    http://www.investopedia.com/exam-guide/cfa-level-1/liabilities/accounting-for-leases.asp
    ... Of Capital Vs. Operating Leases; 9.18 Determining The Value Of The Lease
    And The Lease Asset; 9.19 Sale And Leaseback; 9.20 Types Of ...

  • Series 7 Study Guide - Determining Customer Objectives - Client ...

    http://www.investopedia.com/exam-guide/series-7/customer-objectives/client-balance-sheet.asp
    ... Consumer debt, $18,000. Taxes and penalties payable, $5,000. Auto lease payments
    payable (current portion), $3,000. ... Auto lease payments (non-current portion), $3,000 ...

  • CFA Question of the Week 30/08/2005 | Investopedia

    http://www.investopedia.com/professionals/questionoftheweek/cfa/300805.asp
    ... If at the end of the year, the company is reporting a lease obligation
    of $652,000, what must be the annual total lease payments? ...

  • Layoff Protection Plans: Good Deal Or Gimmick?

    http://www.investopedia.com/articles/pf/09/layoff-protection-plans.asp
    ... attempting to replace their income. Hyundai Assurance Plus pays the lender
    a lump sum equal to 90 days of loan or lease payments.". ...

  • Build Your Small Business During Downswings

    http://www.investopedia.com/articles/pf/08/small-business-recession-tips.asp
    ... For example, an item that is leased under a fair market value or true lease may
    be eligible to deduct the monthly lease payments as an operating expense ...

  • Debt Ratios: Overview Of Debt | Investopedia

    http://www.investopedia.com/university/ratios/debt/ratio1.asp
    ... The relevant figure will be found in the notes to financial statements and identified
    as "future minimum lease payments required under operating leases that ...

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