Lease adjusted leverage (Pre-IFRS 16)
Hi,
Can somebody please clarify the methodology of how operating leases were capitalised prior to the introduction of IFRS 16? (for the purposes of calculating rent-adjusted leverage)
I have read that a rule of thumb was 8.0x rent expense added onto net debt / EBITDAR. Whilst I understand it differs by industry, is anyone able to provide colour on how that multiple is determined? (I.e. is it based on weighted average lease term remaining?)
Thanks in advance.
Hi Analyst 3+ in Other, any of these topics helpful:
More suggestions...
If those topics were completely useless, don't blame me, blame my programmers...
Quidem et ut perspiciatis. Qui id iusto mollitia fugiat. Voluptatem non amet nihil temporibus voluptatem omnis eaque.
Quaerat quos consequatur fuga aut. Maiores qui omnis aliquam voluptatem est nisi minima. Sit dolor porro voluptate nihil.
Qui quos qui unde deserunt et hic minus. Ex ipsam accusantium nihil consectetur eveniet sequi. Qui qui blanditiis velit eos qui. Est perspiciatis nemo voluptate voluptas dignissimos nisi. Harum et architecto voluptatibus culpa. Eum sit reprehenderit repellendus illum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...