Financial Performance Measures




MARLBOROUGH LINES LIMITED - LINES BUSINESS

FORM FOR THE DERIVATION OF FINANCIAL PERFORMANCE MEASURES FROM FINANCIAL STATEMENTS

(Initial and Calculation)

Derivation Table Symbol Formula
Operating surplus before interest and income tax from financial statements a 3,616
Operating cash, bank balances, and short-term investments b 3,228
Interest income from cash, bank balances, and short-term investments (IST) c 238
Net surplus after tax adjusted pursuant to regulation 18 (NSAT) d 2,388
Amortisation of goodwill and amortisation of other intangibles e 0
OSBITT minus IST f 3,378
Adjust net working capital at end of previous financial year (ΔNWC) g 2,503
Adjusted net working capital at end of current financial year (ANWC) h 21,049
Subvention payment i 0
COV depreciation adjustment j -1,582
Depreciation of SFA at BV (k) k 1,662
Depreciation l -1,069
Subvention tax adjustment m 0
Revaluations n 416
Interest tax shield o 0
Numerator p 1,556
NSAT + (f) - g + j + l - n - o q 275
OSBIT + (f) + j r 2,096
Tax at 33% s 726
OSAT + q + s - r + d t 1,313

| Fixed assets at end of previous financial year (FA) | C | 14,986 |
| Adjusted net working capital at end of previous financial year (ANWC) | D | 2,703 |
| Adjusted net working capital at end of current financial year (ANWC) | E | 21,049 |
| Total equity at end of previous financial year (TE) | F | 21,044 |
| Average total funds employed (ATFE) | G | 22,504 |
| WUC at end of previous financial year (WUC) | H | 188 |
| Average total works under construction | I | 174 |
| Half of revaluations | J | 208 |
| Intangible assets at end of current financial year (%) | K | 0 |
| Average total intangible assets | L | 0 |
| Subvention payment at end of previous financial year (SP) | M | 0 |
| Subvention payment tax adjustment at end of previous financial year | N | 0 |
| System fixed assets at end of previous financial year at book value (SFA) | O | 13,934 |
| System fixed assets at end of current financial year at book value (SFA) | P | 12,064 |
| Average value of system fixed assets at book value (SFAC) | Q | 13,049 |
| System Fixed assets at year beginning of current financial year at ODV value (SFACODV) | R | 20,294 |
| Average value of system fixed assets at ODV value (SFACODV) | S | 18,991 |

Financial Performance Measures
ROF
ROI based on formula ROI 3.22%
ROE
Return on equity (ROE) ROE 6.09%
ROFI
Return on funds employed (ROFI) ROFI 6.91%

Formula Notes:

a + b - c + e + f + g + j + k + l - m

Return on Investment (ROI):

ROI = (OSAT + r - t) / (TE + g) * 100

Return on Equity (ROE):

ROE = NSAT / TE * 100

Return on Funds Employed (ROFI):

ROFI = OSBIT / (ATFE + g) * 100


Note:

  1. Maximum statutory allowed tax rate applies to corporate entities.
  2. ΔNWC = change in working capital; ANWC = adjusted net working capital.
  3. BV = book value; ODV = optimised deprival valuation; SFA = system fixed assets.


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Online Sources for this page:

VUW Te Waharoa PDF NZ Gazette 2001, No 121


Gazette.govt.nz PDF NZ Gazette 2001, No 121





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Financial Performance, Operating Surplus, Return on Investment, Return on Equity, Return on Funds Employed, Marlborough Lines Limited