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Lease Term
The fixed, non-cancellable period during which a lessee has the right to use an asset, with the option for renewal under specific conditions.
Operating Lease
A contract allowing for the use of an asset without ownership, generally resulting in periodic lease payments and not recorded on the lessee's balance sheet under certain conditions.
Capital Lease
A lease agreement that is classified as a purchase by the lessee for accounting purposes, based on criteria such as ownership transfer or a bargain purchase option.
Asset Turnover Ratio
A financial ratio that measures the efficiency of a company's use of its assets to generate sales revenue, calculated as total revenue divided by average total assets.
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