Capitalizing Operating Leases

Most analysts will proforma these operating leases back into the company’s financial statements to get a more proper view of their true debt and related expenses – in other words, as if the company bought the asset outright and took on debt to finance it. As an example, the following is the leasing footnote from McDonald’s Corporation’s 2000 Annual Report: “At December 31, 2000, the ... ................
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