Off-balance sheet operating leases as a substitute for debt has been an issue since the SEC asked the FASB to update the rules over a decade ago. Our models have always made the adjustment to put off-balance sheet debt back on the balance sheet to get a better sense of a company’s obligations and to hold management accountable for the capital used in the business.
For investors who haven’t been following this issue, however, the new rules may come as quite a shock once they’re enacted in 2018. In this special report, we identify the 10 companies that will be most affected by the new rules. The impact for some companies will be more than 10 times their entire market cap
*This report is free to all Professional & Institutional members.
Photo Credit: Dan Simpson (Flickr)