If a firm has both interest expense and lease payments?

If a firm has both interest expense and lease payments, it must manage these cash outflows carefully to maintain financial stability. Interest expense represents the cost of borrowing, while lease payments are contractual obligations for using assets. Both can impact cash flow and profitability, so understanding their effects on financial metrics, such as EBITDA or net income, is crucial for effective financial planning and analysis. Properly accounting for these expenses is essential for assessing the firm's overall financial health and making informed investment decisions.