Selling 'Oxford Finance' and the TRA Balance Sheet
Quote:
Originally Posted by
percy
I have compared Turners Balance sheet assets/liabilities page 33 with segement assats/liabilities page 53.
Taking the finance assets/liabilities out of the balance sheet I end up with total assets of $377,826,000 and total liabilities of $186,993,000.
|
Balance Sheet |
less Finance Segment |
equals Oxfordless Entity (+ $60m from Oxford Sale) |
Oxfordless Entity (+ $100m from Oxford Sale) |
Agree with Percy? |
Assets (A) |
$654.182m |
$276.356m |
$377.826m + $60m |
|
Yes |
Assets: $100m Oxford Sale (C) |
|
|
|
$377.826m + $100m |
|
less Liabilities |
$427.808m |
$216.996m |
$210.812m |
|
No |
equals Total Shareholder Equity {B} |
$226.374m |
$59.360m |
$167.014m + $60m |
|
Shareholder Equity: $100m Oxford Sale {D} |
|
|
|
$167.014m + $100m |
|
less Other Reserves |
$0.452m |
|
$0.452m |
|
less Retained Earnings |
$19.527m |
|
$19.527m |
|
equals Shareholder Equity |
$206.395m |
|
$207.035m |
|
Equity Ratio {B}/{A} |
34.6% |
|
51.9% |
|
Equity Ratio {D}/{C} |
|
|
|
55.9% |
|
Quote:
Add other reserves of $452,000 and Retained earnings of $19,527,000 I end up with shareholders equity of $186,993,000
$167.014m + $19.527m +$0.453m = $186.993m
I see where you get your number from Percy, adding back the other reserves of $0.452m and retained earnings of $19.527m at the bottom of the balance sheet on page 33. However, I don't think you need have added those two figures onto the shareholders equity, because they were already in there before you did it!
Quote:
which means shareholders equity would improve from current 34.6% to 49.5%.
Or from 34.6% to 51.9%? Either way though, anything with equity ratio of around 50% is not a low debt company.
Quote:
However should Oxford Finance sell for $100mil plus there would be a further $40mil to be added to shareholders equity.
And the equity ratio would improve to 55.9%. With these very low interest rates, there could be a case for a one off 'cash' capital return if Oxford finance is sold for that optimistic $100m figure. But equally likely is that after struggling with high debt, Turners will bank the money and use it to expand their retail footprint. An equity ratio of 55.9% is not low, and the car retail business remains volatile.
SNOOPY