Quick Definition
Contain the leased property of a company, totaling the sum of all lease payments.
Explanation of Lease Payments
Listed on the Balance Sheet, this value is a line item under Long-Term Debt, as generally leases extend beyond one year. This figure will vary widely between companies, and whether to buy assets versus leasing them is always a opinionated topic of discussion.
Importance of Lease Payments
This figure alone is not particularly important, and is used in the calculation of the performance ratio:
Fixed Charge Coverage.
