Bank Covenants FY2016- FY2018
Quote:
Originally Posted by
winner69
Snoops - good work
Phew, what a relief to know it’s all honky dory in Turnerland
Now that I have the Winner tick of approval, I will tabulate these important debt statistics over the last three year.
Leverage Ratio |
|
Averaged Gross Bank Debt (Estimate) |
EBITDA |
Gross Bank Debt/EBITDA |
Maximum Standard |
FY2018 |
1/2 x (($230.459m - $133m) + ($191.708m - $69m)) |
$51.103m |
2.15 |
2.0 |
FY2017 |
1/2 x (($191.708m - $69m) + ($109.327m - $0m)) |
$38.844m |
2.99 |
2.0 |
FY2016 |
1/2 x (($109.327m - $0m) + ($95.151m - $0m) ) |
$35.131m |
2.91 |
2.50 |
The above table indicates a 'triple fail'. However there are difficulties for investors in determining what the average gross bank debt is over the year. So in this instance the trend is of perhaps more interest that the absolute value.
Interest Ratio |
|
EBITDA |
Total Interest |
EBITDA/Total Interest |
Minimum Standard |
FY2018 |
$51.103m |
($14.344m-$1.343m) |
3.9 |
3.5 |
FY2017 |
$38.844m |
($11.350m - $0.206m) |
3.5 |
3.5 |
FY2016 |
$35.131m |
($11.436m - $0.353m) |
3.2 |
3.5 |
It does seem that the financial position of Turners over the last three years is becoming stronger, not weaker as some may think. However these are all minimum standards. Whether these statistics are strong enough for investors putting their money into Turners today is a matter for each individual investor to decide.
SNOOPY