✨ Financial and Efficiency Measures
21 AUGUST NEW ZEALAND GAZETTE 2921
Regulation 15 - Disclosure of Financial and Efficiency Measures: Schedule 1, Part 2.
1 Financial Performance Measures
| 1998 | 1997 | ||
|---|---|---|---|
| a) | Accounting return on total assets, being earnings before interest and tax, divided by average total funds employed | 12.22% | 10.13% |
The strict interpretation for accounting return on total assets from the regulations excludes non-current assets other than fixed assets.
If these other non current assets were included in the total assets this performance measure would be: 12.00% 9.94%
| 1998 | 1997 | ||
|---|---|---|---|
| b) | Accounting return on equity, being net profit after tax, divided by average total shareholders funds. | 6.62% | 6.45% |
| c) | Accounting rate of profit (including revaluations), calculated in accordance with the following formula: | 9.51% | 35.25% |
$$\frac{a-b-c+d}{e}$$
Where
a is earnings before interest and tax;
b is cash tax;
c is the interest tax shield;
d is revaluations;
e is average total funds employed, less half the amount of the revaluations.
The calculation above for 1997 reflects an accounting rate of profit that is not consistent with Enerco's accounting policies. Enerco's accounting policy for revaluations, which complies with SSAP 28 of the Institute of Chartered Accountants of New Zealand, does not allow for taking revaluations into the Statement of Financial Performance.
If the revaluations were excluded for the above calculation the accounting rate of profit for 1997 would have been 6.40%.
Cash tax paid by Enerco in 1998 was $6,993,000 as compared to $12,676,000 in 1997, which is primarily the reason for the increase in the accounting rate of profit for 1998.
2 Efficiency Performance Measures
| 1998 | 1997 | ||
|---|---|---|---|
| a) | Direct Line Costs per km | $2,328 | $4,207 |
| b) | Indirect Line costs per customer | $202 | $163 |
Next Page →
PDF embedding disabled (Crown copyright)
View this page online at:
VUW Te Waharoa —
NZ Gazette 1998, No 121
NZLII —
NZ Gazette 1998, No 121
✨ LLM interpretation of page content
💰 Disclosure of Financial and Efficiency Measures
💰 Finance & RevenueFinancial Performance, Efficiency Measures, Accounting Return, Profitability, Cost Analysis