Lease liability
The present value of future lease payments, recognised on the balance sheet as debt.
How to read the number
Rent on retail space, warehouses or a fleet becomes visible leverage — and enters net debt in a valuation.
When the metric lies
A lease payment is split: part into interest, part into repayment of the liability. That alone lifted reported operating cash flow after the transition without any improvement in the business.
Also known as: lease obligation