TradeAlmanac
Sign in

Right-of-use asset

Leased property recognised as the company's own asset: it does not own the item but controls its use over the lease term.

How to read the number

Appeared once leases stopped being kept off the balance sheet: the lessee now shows both the asset and the debt behind it.

When the metric lies

Because of that standard, leverage at lease-heavy companies rose without a single new loan. Comparison with years before the transition is invalid.

Also known as: rou asset

Related terms