Skip to main content

​
What it does

Converts operating lease commitments into debt equivalents using Damodaran’s approach. This adjusts the company’s debt, EBIT, and invested capital to reflect the economic reality of lease obligations.

​
When to use

Auto-detected in Feeling Lucky mode when operating lease right-of-use assets exceed 10% of total assets. Most companies now capitalize leases under ASC 842/IFRS 16, but the adjustment may still be needed for consistency with Damodaran’s framework.