RECENT POSTS
Tuesday, January 8, 2019
A Look at Climate Change Disclosures

Wednesday, January 2, 2019
Quants: Point-in-Time Data for Backtesting

Friday, December 28, 2018
Now Showing: Controls & Procedures

Thursday, December 27, 2018
A Reminder on Non-GAAP Reporting Rules

Monday, December 17, 2018
Researching PG&E’s Wildfire Risk

Wednesday, December 12, 2018
Tracking Brexit Disclosures

Thursday, December 6, 2018
Campbell Soup: Looking Behind the Label

Sunday, December 2, 2018
SEC Comment Letters: The Amazon Example

Wednesday, November 28, 2018
Measuring Big Pharma’s Chemical Dependency

Monday, November 26, 2018
Analysts, Can You Relate? A True Story

Monday, November 19, 2018
Digging Up Historical Trend Data: Quest Example

Sunday, November 11, 2018
Cost of Revenue, SG&A: Q3 Update

Monday, November 5, 2018
Lease Accounting: FedEx vs. UPS

Saturday, November 3, 2018
New Email Alerting Powers

Wednesday, October 31, 2018
PTC and Two Tales of Revenue

Tuesday, October 30, 2018
10-K/Q Section Text Change Detection

Sunday, October 28, 2018
Finding Purchase Price Allocation

Sunday, October 21, 2018
Charting Netflix Growth in Three Ways

Wednesday, October 17, 2018
Interesting Data on Interest Income

Thursday, October 11, 2018
The Decline of Sears in Three Charts

Archive  |  Search:
Leases:  A Primer
Thursday, February 19, 2015

Last week we began our series of Analysis Guides with a piece on Analyzing Tax Disclosures in financial statements.  This week we continued it with a Lease Template example.  This post is a meant to serve as a primer on what our customers can do with the lease template.  

First, get one of our templates by downloading it from  

https://www.calcbench.com/home/guides

Enable the macros and connect to Calcbench.

Next (assuming you pick the lease template), select a firm by putting the symbol into the cell B3.  You can also change the year in B4 and the Assumed Interest Rate in B5.  

Once you have done the above, you will see that the Present Value of Lease Liabilities (PVLL) is calculated on an annual basis for you.  In addition you will get the Interest Expense, Depreciation and Tax Deduction calculated.  On the far right in cell I20, you will get the estimated amount that would be placed onto the liabilities side of the balance sheet.  

We also provide you with our Lease Ratio, which simply takes the PVLL and divides it by Current Liabilities and Total Liabilities.  Finally, we estimate the PPE increase that is implied if Shareholders Equity were to stay constant for the firm in question. 

Since, we are data scientists, we decided to build a macro based on our template and run this spreadsheet for the S&P 500 constituents for 2013 and 2014.  The graph below shows the change in lease Liabilities on a year over year basis for firms that have reported both 2014 and 2013 results so far (through today, 2/19/15).   You might interpret increases in Lease Liabilities as confidence, or perhaps not.  

Also attached are the Implied Lease years for each of the firms.  This is an imputed, or estimated, number based on the dollar amounts beyond the standard 5 year lease reporting period and current leasing behavior.  As you see, Whole Foods, Costco and Chipotle report the most dollars committed to the future.  

This is just the start of things that we are doing.  Call us for more.  us@calcbench.com

Family Dollar is the biggest YoY increase (percentage wise) and this is before the Dollar tree merger!

image


Implied Lease Years.  E.G. Whole Foods at over 17 years  (first 5 reported + 12 implied)!  #Confident.

image

FREE Calcbench Premium
Two Week Trial

Research Financial & Accounting Data Like Never Before. More features and try our Excel add-in. Sign up now to try the Premium Suite.