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What is the impact on return on assets and debt/equity when a company enters an operating...

What is the impact on return on assets and debt/equity when a company enters an operating lease?

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if a company enters into an operating lease, it return on assets ratio would be higher and debt equity ratio would be lower because an operating lease does not results into increase in Assets and liabilities as assets under operating lease are not recorded either as assets and liabilities. Operating lease results in higher net income in early years because it is tax deductible expense and would results in more tax savings.

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