Operating Lease Converter Excel Model
Originally published: 20/06/2016 12:11
Last version published: 02/02/2018 14:50
Publication number: ELQ-98831-3
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Operating Lease Converter Excel Model

An Excel Model allowing you to convert lease commitments to debt.

Description
Operating lease expenses are really financial expenses, and should be treated as such. Accounting standards allow them to be treated as operating expenses. This Excel Model will convert commitments to make operating leases into debt and adjust the operating income accordingly, by adding back the imputed interest expense on this debt.

- Prof. Aswath Damodaran

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This Best Practice includes
1 Excel Model File

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Further information

The objective of this model is to get the following output values:
- Debt value of leases
- Operating income with operating leases reclassified as debt
- Debt with Operating leases reclassified as debt


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