New Zealand Gazette – 1998 – No. 149

Page 3613

✨ Financial Performance Measures



18 SEPTEMBER NEW ZEALAND GAZETTE 3613

FINANCIAL EFFICIENCY PERFORMANCE MEASURES (REGULATION 13)

FINANCIAL MEASURES

(A) Accounting Return on Total Assets:
Being earnings before interest and tax, divided by average total funds employed.
1998 1997 1996 1995
13.1% 14.0% 13.6% 8.6%

(B) Accounting Return on Equity:
Being net profit after tax, divided by average total shareholder’s funds.
7.7% 8.2% 7.6% 5.8%

(C) Accounting Rate of Profit:
Accounting rate of profit, calculated in accordance with the formula:

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

where   a is earnings before interest
        b is cash tax
        c is interest tax shield
        d is revaluations
        e is average total funds minus half the amount of revaluations
                                                                                     8.9%    14.1%*  6.1%*   8.2%*

    1. In order to provide users of these statements with consistency in performance measures, the ARP has been restated to include the tax effect of subvention payments in the cash tax paid figure.

    2. The ODV increased in the 1997 year due to the lives of certain assets being extended. This movement in reported ODV does not reflect an increase in economic value, rather a change in the basis of calculation. If the ARP had been restated to exclude this portion of the revaluation, it would have been 8.6%.

EFFICIENCY PERFORMANCE MEASURES

(A) Direct Line Costs per Kilometre:
Being direct expenditure divided by system length (in kilometres)
Note: In calculating this efficiency measure, $10.21 million ($9.34 million in 1997, $8.94 million in 1996, $8.18 million in 1995) of Transpower NZ Ltd’s charges have been excluded.
$3,083 $2,966 $3,035 $3,956

(B) Indirect Line Costs per Electricity Customer:
Being indirect expenditure divided by total customers
$23.76 $19.31 $20.89 $51.00



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Financial Measures, Accounting Return, Efficiency, Electricity Sector, Profitability, Costs