Financial Performance Measures




NETWORK WAITAKI LIMITED BUSINESS

FORM FOR THE DERIVATION OF FINANCIAL PERFORMANCE MEASURES FROM FINANCIAL STATEMENTS - YEAR ENDED 31 MARCH 2004

Derivation Table Symbol Calculations
Opening net surplus before interest and income tax from non-network business activities (S1) 1,500,347
Input 2 (S1) 0
Not subject after tax adjusted pursuant to regulation 18 (S3.1) 0
Amortisation of goodwill and amortisation of other intangibles g 1,046,761
Non regulated tax (if any) from favourable settlements 0
Solution payment 864,512
Destruction of PPE and/or goodwill (NZ) 2,156,046
Depreciation and/or amortisation adjustment 1,324,414
Subvention payment tax adjustment d 533,072
Interest tax shield d1 0
Revaluations r 0
Income tax t 315,835

Numerator

| | | |
| Closing net surplus before interest and income tax (adjusted pursuant to Reg 18) | | 3,146,586 |
| Plus: Property & Equipment at end of previous financial year (FA) | | 26,020,566 |
| Adjusted net working capital at end of previous financial year (AWNC2) | | 25,236,659 |
| Average cost funds employed (WACC) | c | 45,645 |
| Total equity at end of previous financial year (TEq) | | 42,368,088 |
| Total debt at end of previous financial year (TD) | | 42,018,388 |
| WACC at end of previous financial year (MLCs) | | 27,684 |
| Interest on debt of previous financial year (WLC) | | 338,845 |
| Average inflation under corporation | | 330,868 |

Retained earnings

| Irreducible assets at end of previous financial year | | 0 |
| Tax change | | 0 |
| Intangible assets at end of current financial year (FA) | | 21,177,594 |
| Subvention payments to and from previous financial year | | 731,538 |
| Subvention receipt adjustment at end of previous financial year | | 0 |
| Salary adjustment (after tax adjustment) | | 0 |
| System Plant, Property & Equipment at end of previous financial year value (G) | 3 | 37,714,279 |
| System Plant, Property & Equipment at end of current financial year at book value | | 45,426,377 |
| System Plant, Property & Equipment & adjustment of current financial year at COV value (GFAov) | | 37,603,181 |
| System Plant, Property & Equipment year end book value | | 45,669,594 |
| Value of System Plans proper and equipment at COV value | | 41,835,377 |
| System Plant, Property & Equipment of year beginning at COV financial year at ODV value | | 45,761,621 |

Financial Performance Measures:

| | |
| Return on Equity (ROE) | | |
| --- 2003 | 654,512 |
| 2004 | 1,046,761 |
| add | 0 |
| deduct | 204 |
| deduct | 0 |
| deduct | 0 |
| deduct | 0 |
| ROE | 1,446,069 |
| | 0.12 |

| Return on Funds (ROF) | | |
| --- 2003 | 553,072 |
| 2004 | 533,072 |
| add | 0 |
| deduct | 204 |
| deduct | 0 |
| deduct | 0 |
| ROF | 1,046,761 |
| | 0.07 |

| Return on Investment (ROI) | | |
| --- 2003 | 533,072 |
| 2004 | 533,072 |
| add | 264 |
| add | 0 |
| deduct | 204 |
| deduct | 0 |
| ROI | 1,056,176 |
| | 0.06 |

| OSBITDA¹ = g + d + r + t | | NSAT² = (a + g + d + r) × (1 - t) |
| GSBIT³ = OSBIT - d | 1,572,833 |
| = g + r + t | 1,217,594 |
| | add | 41 + d |
| | 763,988 |
| | 2,361 |

| | | 42,368,855 |
| | add | |
| | 46,910,506 |

| | deduct | |
| | 339,689 |

| EVA | 336,668 |
| | deduct |
| | 16,761 |

| Average Total Funds (ATFF) | 41,335,377 |
| | deduct |
| | 41,761,821 |

| Denominator | |
| | add |
| | 45,761,621 |

| ATE²³ = OSBIT⁴ × (1 - t) + ATFF | 4.1% |
| ROF = OSBIT ÷ ATFF × (1 - t) | 3.77% |
| ROI = NSAT ÷ ATFF | 2.24% |
| | (1.09) |

| Notes:
| 1. OSBIT = operating surplus before interest and tax.
| 2. NSAT = net surplus after tax.
| 3. GSBIT = gross surplus before interest and tax.
| 4. ATFF = average total funds.

Average inflation rate shown to compute series:

  • Subservient to lock value.
  • ROE = return on equity.
  • ROF = return on funds.
  • ROI = return on investment.


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Online Sources for this page:

VUW Te Waharoa PDF NZ Gazette 2005, No 21


Gazette.govt.nz PDF NZ Gazette 2005, No 21





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🏭 Network Waitaki Limited Lines Business Financial Performance Measures (continued from previous page)

🏭 Trade, Customs & Industry
Financial Performance, Network Statistics, Electricity, Return on Equity, Return on Funds, Return on Investment, EVA, OSBIT, NSAT, GSBIT, ATFF