RE:EBITDA vs EBITDA less lease paymentsYou are correct that converting operating leases to financial leases boosts reported gross profit and EBITDA. But remember that the key purpose of EBITDA is the EV/EBITDA ratio, EV is increased by the financial leases which means that the higher EBITDA does not necessarily result in a lower ratio..
Carlito3311 wrote: EBITDA is not a great proxy for a company that increasingly use finance leases for its equipment that it then leases to patients. This is because the equipment cost does not flow through COGS but the payments are reflected in depreciation/amortization and explicitly in the cash flow statement financing section as finance lease payments. EBITDA is thus not cash flow as they have to pay these leases from EBITDA first. So better to use EBIT or EBITDA less lease payments.