Leverage ratios will be unchanged regardless of whether a lease is classified as an operating lease or a financial lease.

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Leverage ratios, such as the debt-to-equity ratio, can change depending on whether a lease is classified as an operating lease or a financial lease. Financial leases are capitalized, adding both assets and liabilities to the balance sheet, which can affect leverage ratios, whereas operating leases do not have the same balance sheet impact under many accounting standards.

Leverage Ratios Will Be Unchanged Regardless of Whether a Lease