How is Shareholder's funds + Long term Debt = Average Net assets?
Isn't Net assets essentially Equity or Shareholder's funds (Total Assets - Total Liabilities)?
Shouldn't Shareholder's Funds + Long term Debt = Long term Capital?
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Aditya·
Wonderful lecture!
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Hilam·
Thank you alot for the wonderful lecture
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Hoi·
Thanks for the lecture first. May I confirm that even though we calculated 5 ratios to analyze the company's performance to achieve its objective, should we need to provide an opinion or conclusion on whether the company has achieved or not achieved its target? and if so, should we need to provide an assumption about why they achieve/do not achieve?
for example, we can see Repse has a significant decrease in long-term debt and issued new shares in year 3. Could I say Repse has not achieved its objective because the profit margin has decreased from yr1 (19.87%) to yr3 (17.20%). Besides, it has repaid a lot of debt in year 3 and therefore may not have adequate financing resources during that period. In this regard, it reasonably assumed that they issued new shares in year 3 as additional financing resources. This also diluted the market value of shares.
Would above answers get points in the exam or it is unnecessary?
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SvetlanaSupporter·
Thank you sir for yet another great lecture!
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Javokhir·
Thanks for the great lecture, and I do have one question though, as there was a right issue, should not we have to find restated EPS, as right issue includes bonus element?
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njweng27·
Thank you sir, very interesting lectures, I'm beginning to love this paper more
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Hoi Ying·
Thanks for the lecture. In the answer, I saw the market capitalisation are 86.67 and 143.4 in Year 1 and Year 4 respectively. May I ask how to calculate it? Thanks :))
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CJS·
MV of share x Number of shares in issue
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John MoffatTutor·
Correct :-)
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fatimali·
Mr. John, at 3:07 isn't the increase in turnover 34.7%?
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Caoimhe·
I thought the same also?
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John MoffatTutor·
Yes, it is 34.7%. I made a mistake :-(
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Betty·
Dear John. For the video at 4:10, the calculation for PBIT, does it should be (11,300-8,700)/8,700, instead of using the number from PAIT (7,550-5,100)/5,100?
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Betty·
Oh, I figured it out that Mr. John corrected it. Never mind!
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John MoffatTutor·
I am pleased that you figured it out :-)
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Denis G.·
Hi John! Thx for the resource and for the particular lecture.
@11:10 on the timeline you state that Net assets=Captital Employed (in particular Shareholders funds + long term borrowings). Aren't Net assets=Total assets less total liabilities? I'm a bit confused. Thx.
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gumeden·
Thank you very much for this lecture. Just a question please. We know that maximising shareholders wealth is through increasing share price. And also that profits are different from wealth. Would we not loose marks through commenting on PBIT and PAT
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IhmantSupporter·
Dear John, at 2:47, I think the increase is +34.7%, or is it really 11.9%? BR,I.
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Denis G.·
Agree that 34.7%. Thx for noting. Probably the John was a bit nervous. The mistake is rather arithmetic. The formula is correct.
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Donald·
Thanks for the lecture, I need to ask if is it wrong to calculate leverage (Total assets/Equity) instead of gearing(long term debt/equity) for exam purpose? On the above example leverage would be 1,5 while gearing 50% (from leverage we can get 50% easily) but it's easy to compare the company based on leverage as well.
How is Shareholder's funds + Long term Debt = Average Net assets?
Isn't Net assets essentially Equity or Shareholder's funds (Total Assets - Total Liabilities)?
Shouldn't Shareholder's Funds + Long term Debt = Long term Capital?
for example, we can see Repse has a significant decrease in long-term debt and issued new shares in year 3. Could I say Repse has not achieved its objective because the profit margin has decreased from yr1 (19.87%) to yr3 (17.20%). Besides, it has repaid a lot of debt in year 3 and therefore may not have adequate financing resources during that period. In this regard, it reasonably assumed that they issued new shares in year 3 as additional financing resources. This also diluted the market value of shares.
Would above answers get points in the exam or it is unnecessary?
@11:10 on the timeline you state that Net assets=Captital Employed (in particular Shareholders funds + long term borrowings). Aren't Net assets=Total assets less total liabilities? I'm a bit confused. Thx.