New Zealand Gazette – 1995 – No. 139

Page 4558

✨ Financial Performance Measures



4558

NEW ZEALAND GAZETTE

No. 139

Regulation 13 and Part II of the First Schedule

Financial Performance Measures and Efficiency Performance Measures

1 Financial Performance Measures

a) Accounting return on total assets, being earnings before interest and tax divided by average total funds employed:

Earnings before interest and tax 231,334,000 219,778,000
Average total funds employed 2,822,542,000 2,917,683,000
Accounting return on total assets 8.2% 7.5%

The definition total funds employed has been refined to exclude Works Under Construction. This change aligns the definition with an economic view of operating capital employed. Had this change been made in 1994 the Accounting Return on Assets would have been 7.6%.

b) Accounting return on equity, being net profit after tax, divided by average total shareholders’ funds:

Net profit after tax 84,523,000 102,017,000
Average total shareholders’ funds 1,228,540,000 1,251,674,000
Accounting return on equity 6.9% 8.2%

c) Accounting rate of profit, which shall be calculated in accordance with the following formula:

a - b - c + d
-----------
      e

a Earnings before interest and tax 231,334,000 219,778,000
b Cash tax 25,506,000 15,890,000
c Interest tax shield 40,690,000 35,822,000
d Revaluations 59,664,000 0
e Average total funds employed, minus half the amount of revaluations 2,792,710,000 2,917,683,000
Accounting rate of profit 8.0% 5.8%

As noted under a) above, the definition of total funds employed has been changed. Had this change been made in 1994 the Accounting Rate of Profit would have been 5.9%.

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✨ LLM interpretation of page content

🏗️ Notes to the Financial Statements for Trans Power New Zealand Limited (continued from previous page)

🏗️ Infrastructure & Public Works
Financial Performance, Efficiency Measures, Accounting Return, Total Assets, Equity, Profit Rates, Revaluations, Tax Shield