Comments (3)

Best Response
Dec 15, 2017

Nothing happens to net income. Lease/ rent expense just becomes interest expense & depreciation expense. As for EBITDA, if the lease was considered an operating expense (it should be) then capitalizing it would increase EBITDA since that interest & depreciation expense moves below the EBITDA line. You could've just googled this.

    • 2
Dec 15, 2017

So I add back the initial operating expense on EBITDA, do I have to subtract the newly created DA?

Array

Dec 15, 2017
Comment