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==Recasting financial statements==
An earnings recast is the act of amending and re-releasing a previously released earnings statement, with specified intent.<ref>{{cite web|url=https://www.investopedia.com/terms/e/earningsrecast.asp| title=Earnings Recast}}</ref>
Investors need to understand the ability of the company to generate profit. This, together with its [[rate of profit]] growth, relative to the amount of capital deployed and various other financial ratios, forms an important part of their analysis of the value of the company. Analysts may modify ("recast") the financial statements by adjusting the underlying assumptions to aid in this computation. For example, operating leases (treated like a rental transaction) may be recast as capital leases (indicating ownership), adding assets and liabilities to the balance sheet. This affects the financial statement ratios <ref>{{cite web|url=http://www.bytestart.co.uk/maximise-price-selling-business.html/ | title=Recasting}}</ref>.
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