Underlying Gearing Ratio HY2015 (Period Ending 31/12/2014)
Quote:
Originally Posted by
Snoopy
An update from the previous reporting period, FY2013.
The underlying debt of the company according to the HY2014 statement of financial position is: $32.612m
To calculate the total underlying company assets we have to (at least) subtract the finance receivables from the total company assets. I would argue that you should also subtract the problem 'Investment Properties' and the unspecified 'Investments' from that total:
$2,492.090m - ($1,905.850m +$61.481m + $255.427m) = $269.332m
We are then asked to remove the intangible assets from the equation as well:
$269.332m - $22.891m = $246.441m
Now we have the information needed to calculate the underlying company debt net of all their lending activities:
$32.612m/$246.441m= 13.2% < 90%
Result: PASS TEST
This means the position has improved usefully over the latest half year.
An update from the previous reporting period, FY2014.
The underlying debt of the company according to the HY2015 statement of financial position is:
$38.666m + $4.109m = $42.775m
To calculate the total underlying company assets we have to (at least) subtract the finance receivables from the total company assets. I would argue that you should also subtract the problem 'Investment Properties' and the unspecified 'Investments' from that total:
$3,162.169m - ($2,722.443m +$25.831m + $209.544m) = $204.351m
We are then asked to remove the intangible assets from the equation as well:
$204.351m - $49.933m = $154.418m
Now we have the information needed to calculate the underlying company debt net of all their lending activities:
$42.775m/$154.418m= 27.7% < 90%
This compares unfavourably with the comparatuve half year period figure of 13.2%, but favourably with the 40.5% figure from FY2014 date (30th June 2014)
Result: PASS TEST
SNOOPY
EBIT to Interest Expense ratio HY2015 (Period ended 31/12/2014)
Quote:
Originally Posted by
Snoopy
Results are out for HY2014 so time to update.
Updating for the half year result HY2014. The EBIT figure is not in the financial statements. So I will use 'interest income' as an indicator for EBIT, once I have taken out the selling and administration costs
EBIT (high estimate) = $100.500m-$32.417m= $68.083m
Interest expense is listed as $48.114m.
So (EBIT)/(Interest Expense)= ($68.083)/($48.114)= 1.42 > 1.20
Result: PASS TEST, a significant improvement from the FY2013 position. Perhaps that drop in interest being paid to debenture holders as a result of becoming a bank is starting to come through?
Updating for the half year result HY2015. The EBIT figure is not in the financial statements. So I will use 'interest income' as an indicator for EBIT, once I have taken out the selling and administration costs
EBIT (high estimate) = $128.252m-$33.523m= $94.729m
Interest expense is listed as $62.577m.
So (EBIT)/(Interest Expense)= ($94.729m)/($62.577m)= 1.51 > 1.20
Result: PASS TEST, an improvement from the HY2014 (1.42) position. And also an improvement on the position 6 months ago FY2014 (1.44)
SNOOPY
Equity Ratio HY2015 (period Ended 31/12/2014)
Quote:
Originally Posted by
Snoopy
Updating this number for the half year HY2014
Equity Ratio = (Total Equity)/(Total Assets)
Using numbers from the Heartland HYR2014
= $382.510m/$2492.090m = 15.3%
This is an improvement on the FY2013 position. It does not include any effect from the just announced reverse mortgage acquisitions. Nevertheless the underlying loan book continues to shrink away, albeit by a miniscule 0.5%.
Updating this number for the half year HY2015
Equity Ratio = (Total Equity)/(Total Assets)
Using numbers from the Heartland HYR2015
= $462.310m/$3162.169m = 14.6%
This is a decrease on the HY2014 position (15.3%). It is also a decrease on the FY2014 position of 6 months ago (15.0%)
SNOOPY