Lease effect on Gearing

No they don't affect traditional gearing ratios. But it is a good point to make if there is a written part of a question relating to leasing. They do affect the operational gearing because they are a fixed cost.

It was you who used the word 'traditional'!!! I assumed that you were referring the the normal 'gearing ratio' which measures the level of financial gearing (and is explained in Chapter 13 of the free lecture notes and the lectures that of with it).

You are welcome :-)