With respect to operating leases,adjusting the financial statements makes ROIC and free cash flow independent of capital structure choices,specifically whether to lease,own,or borrow.

Question

Quizplus · Accepted Answer

Adjusting for operating leases allows for a more accurate comparison of company performance, regardless of their capital structure choices relating to leasing, owning, or borrowing.

With Respect to Operating Leases,adjusting the Financial Statements Makes ROIC