Operating lease
Short-term, cancelable lease. A type of lease in which the period of contract is less than the life of the equipment and the lessor pays all maintenance and servicing costs. |
Similar financial terms
Annual fund operating expensesFor investment companies, the management fee and "other expenses," including the expenses for maintaining shareholder records, providing shareholders with financial statements, and providing custodial and accounting services. For 12b-1 funds, selling and marketing costs are included.
Short-run operating activities
Events and decisions concerning the short-term finance of a firm, such as how much inventory to order and whether to offer cash terms or credit terms to customers.
Operating risk
The inherent or fundamental risk of a firm, without regard to financial risk. The risk that is created by operating leverage. Also called business risk.
Operating leverage
Fixed operating costs, so-called because they accentuate variations in profits.
Operating profit margin
The ratio of operating margin to net sales.
Operating exposure
Degree to which exchange rate changes, in combination with price changes, will alter a company's future operating cash flows.
Operating cycle
The average time intervening between the acquisition of materials or services and the final cash realization from those acquisitions.
Operating cash flow
Earnings before depreciation minus taxes. It measures the cash generated from operations, not counting capital spending or working capital requirements.
Net operating margin
The ratio of net operating income to net sales.
Net operating losses
Losses that a firm can take advantage of to reduce taxes.
True lease
A contract that qualifies as a valid lease agreement under the Internal Revenue code.
Sales-type lease
An arrangement whereby a firm leases its own equipment, such as Acer leasing its own computers, thereby competing with an independent leasing company.
Sale and lease-back agreement
Sale of an existing asset to a financial institution that then leases it back to the user.
Safe harbor lease
A lease to transfer tax benefits of ownership (depreciation and debt tax shield) from the lessee, if the lessee could not use them, to a lessor that could use them.
Net lease
A lease arrangement under which the lessee is responsible for all property taxes, maintenance expenses, insurance, and other costs associated with keeping the asset in good working condition.
Limitation on sale-and-leaseback
A bond covenant that restricts in some way a firm's ability to enter into sale and lease-back transactions.
Leveraged lease
A lease arrangement under which the lessor borrows a large proportion of the funds needed to purchase the asset and grants the lender a lien on the assets and a pledge of the lease payments to secure the borrowing.
Lease Rate
The payment per period stated in a lease contract.
Lease
A long-term rental agreement, and a form of secured long-term debt.
Break-even lease payment
The lease payment at which a party to a prospective lease is indifferent between entering and not entering into the lease arrangement.
Capital lease
A lease obligation that has to be capitalized on the balance sheet.
Cost of lease financing
A lease's internal rate of return.
Precious Metals Lease
A vehicle or technique used to finance precious metals inventories. It is related to the term structure of precious metals prices.
