The differences between an operating lease and a capital lease are quite small despite the rather large impact the difference in accounting can have on the balance sheet and economic earnings of the business.
FORBES: Off-Balance Sheet Debt: Bad Enough That FASB Notices, Maybe You Should Too?
Lately industry profitability has been poor, increasing the need for shippers to conserve capital and lease rather than buy.
Before the smaller players drill, they must factor in such issues as their capital and lease costs, as well as the price of the underlying commodity.
FORBES: Oil and Gas Feeding Off Each Other While They are Fueling Economic Recovery
That means that even though CHK may be reporting positive accounting earnings, capital expenditures for lease acquisitions and drilling are greater than stated net income.
While some companies prefer to own their land and buildings, others would much prefer to lease and reduce their capital commitment, particularly in a country where traditional bank financing is generally unavailable.
The top-quality ones have a new lease on life with added capital, but now they have to manage their way through it.
With revenue per server and absolute demand increasing and the ability to lease the facility, management views the risk of stranded capital for the data center is reduced.
One way is to lease or rent the domain name until your startup has enough capital to purchase it.
By choosing to lease data centers and simply buy equipment, Rackspace has lessened its capital exposure while itself benefitting from a leasing model.
Just recently, Rackspace announced its intention to lease data center space from Equinix in order to reduce its own capital outlays and generate higher-margin Fanatical Service revenue.
Call your local representative from a financial institution, such as GE Capital or Bank of America, and ask them to price a typical eighty- four month lease scenario with both five and seven year depreciation schedules.
FORBES: Connecting marketers to the Forbes audience. What is this?
About 50% of the U.S. jet fleet is leased from such companies as General Electric Capital Aviation Services (nyse: GE - news - people ), International Lease Finance Corp. (a unit of AIG) and CIT Group (nyse: CIT - news - people ).
Air Lease will be competing as well with a unit of GE (nyse: GE) , GE Capital Aviation Services (GECAS).
应用推荐