please clarify

CFA Level I
#1

so just to clarify, LOWER EBIT under operating lease and LOWER interest coverage ratio under CAPITAL lease, right???

#2

Capital lease has higher EBIT and has a higher NEt Income in the latter years. thats all i’d know. could someone clarify on the int coverage ratio ?

#3

there are 2 huge threads discussing this on the first page, dunno why we need a 3rd one capital ebit higher, coverage lower

#4

Capital leases have interest, so the interest coverage ratio HAS to be lower right?

#5

daj… you’re correct on both!