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Financial statements

Financial statements

 
Why add rent back to earnings?
 
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Financial statements discussion
 
otavio
09/30/10
Hello,

I'm looking at adjustments made to financial statements by analysts, and I see that rent expense has been added back to EBIT (earnings before interest and taxes).

Why would someone add back rent, if it's an expense, to earnings?

This seems to be common practice, but doesn't make logical sense at the moment.


Thank you
Otavio