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Leave P&L ratios for true net equity value

July 21, 2006

Analysis of:FACTBOX-Retailers seen taking biggest hit from lease accounting | today.reuters.com

As far as retailers share values are concerned, markets make too much use of P&L ratios and not enough of net equity value.

Potential reforms on lease accounting will bring better light into retailers real economic value showing the real indebtedness of some companies and their low net asset value.

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